Compass announces tech layoffs as housing market slows

In an effort to cut company costs amid a downturn in the housing market, New York-based real estate company Compass is experiencing a round of layoffs that will primarily affect its technology team.

News of the layoffs was made public via a Securities and Exchange Commission filing Tuesday, in which Compass called its upcoming workforce reduction a “significant action” necessary due to cost-cutting efforts. highlighted in a mid-August earnings report.

“A significant portion of the workforce reduction involves reductions in the company’s engineering and product team personnel,” Compass said in the SEC filing.

About 3,000 of the company’s 21,636 employees are based in the Bay Area, according to LinkedIn. It’s unclear how many employees will be affected by this round of layoffs, and Compass declined SFGATE’s request for comment.

Compass is known for merging the real estate and technology industries by using technology to simplify the process of buying or selling properties, a platform that is now advanced enough to warrant layoffs across the company’s technology department. The filing says the company expects costs of $23 million to $26 million related to severance benefits and other expenses associated with the termination of affected employees.

This is Compass’s second round of layoffs in recent months: The company laid off some 450 people in June, mainly due to “clear signs of slowing economic growth,” a Compass spokesperson previously told SFGATE. Redfin also laid off hundreds of employees at the time, and Realtor.com laid off an undisclosed number of employees earlier this month as a result of slowing sales volume in the real estate market.

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