New York-based real estate brokerage Compass Inc. announced a third round of layoffs Thursday as part of its ongoing cost-cutting strategy in the face of a housing slowdown.
Compass CEO Robert Reffkin has made major investments in technology as part of its business strategy in the competitive residential brokerage industry. According to reports, the cuts will leave the tech side of the company largely untouched.
The layoffs, which began last June, are part of what Reffkin has said will be a $320 million cost-cutting plan.
Compass is a major player in some large urban markets like New York and Los Angeles, with more than $250 billion in sales in 2021, according to RealTrends.
However, over the past six weeks, the company has suffered a series of high-profile departures. Their Manhattan sales director Dennis Cusack left in November, and the McNair Group rejoined Coldwell Banker Realty’s Northern California unit last month after years with Compass.
In a filing Thursday, Compass announced it had “implemented a further workforce reduction,” though they have yet to reveal the specific number of jobs lost.
In September, Reffkin sent an email to its leading agents urging them to stick with the team, according to The Real Deal. “As entrepreneurs, you are no strangers to making hard decisions for the long-term success of your businesses,” Reffkin wrote. “I am more excited than ever about what we are building together.”