Real estate broker Compass to cut more jobs to deal with housing downturn By Reuters
© Reuters. FILE PHOTO: A “Real Estate Capital of the World” sign is pictured in front of a building in Lower Manhattan, New York City, New York, US, October 19, 2021. REUTERS/Carlo Allegri
(Reuters) – Real estate broker Compass Inc said on Thursday it would cut more jobs to deal with a downturn in the housing market as it set a target of becoming free cash flow positive by the end of the second quarter.
Rising mortgage rates have made homes unaffordable for many in the past few months, leading to buyers taking a step back from the market.
Home sellers looking for buyers gave concessions in nearly 42% of home sales in the fourth quarter — the highest share in any three-month period, real estate broker Redfin (NASDAQ:) said, citing its records in a report on Thursday.
Compass did not specify the number of job cuts in its latest round of workforce reduction. In June, the company said it would lay off 450 employees, about 10% of its current workforce.
New York based-Compass expects to incur pre-tax cash charges of about $10 million to $12 million for severance and other termination benefits related to the job cuts for the quarter ending March.
Compass said it is aiming to reduce its annualized non-GAAP operating expenses to between $850 million and $950 million.
“Workforce reduction does not impact the US technology engineering team and the company continues to prioritize its technology platform,” Compass said in a regulatory filing.