Compass announces tech layoffs as housing market slows

In an effort to reduce company costs amid a housing market downturnbased in New York Real estate Compass is undergoing a round of layoffs that will primarily affect its technology team.

The news of the layoffs was published by A Securities and Exchange Commission filing On Tuesday, Compass called the upcoming workforce reduction a “significant action” taken necessary through the cost-cutting efforts highlighted in its earnings report from mid-August.

“A significant portion of the workforce reduction includes staff reductions in the company’s engineering team and product,” Compass said in the Securities and Exchange Commission filing.

About 3,000 of the company’s 21,636 employees are located in Gulf areaAccording 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 integrating the technology and real estate industries by using technology to simplify the process of buying or selling real estate — a platform that is now advanced enough to secure layoffs across the company’s tech division. The request said the company expects costs of between $23 million and $26 million related to end-of-service benefits and other expenses associated with terminating affected employees.

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

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