Compass Cuts More Jobs As 2023 Outlook Dims

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…

Former Compass Agent Sues Startup

A California agent has filed a lawsuit against real estate startup Compass, accusing the company of engaging in bait-and-switch tactics to lure high-performing agents away from other companies. The suit filed by former Compass agent J. Gregory Maffei, first reported by Inman, alleges Compass uses “unfair, unlawful and fraudulent business practices.” It seeks $10 million in damages and reimbursement for unpaid commission and expenses, the Real Deal reported. The Real Deal provides some details on the suit: Maffei’s suit claims Compass has leveraged “more than $1 billion in funding from venture capitalists to support its ‘bait-and-switch’ tactics and to account for the losses Compass has incurred by overpaying and poaching its competitors’ real estate agents.” The filing was first reported by Inman.…