Compass announces third round of layoffs 

by John Yellig

Compass announced a third round of layoffs as it seeks to reduce operating expenses and become profitable in the face of a slowing residential real estate market. 

The tech-centric brokerage did not say how many employees would lose their jobs, but noted in an SEC filing disclosing the workforce reduction that its U.S. technology engineering team, which bore the brunt of the most recent round of layoffs in September, would not be affected.  

The company said it expects to incur $10 million to $12 million of charges related to severance and other termination benefits in the first quarter. 

The layoffs, which follow workforce reductions in September and June last year, are aimed at reducing the company’s annual operating expenses to $850 million to $950 million, without further job cuts, by the fourth quarter. The company has “the very specific goal” of becoming free cash-flow positive by the second quarter. 

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