Compass Lays off 350 employees

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Compass announced another round of layoffs Thursday, which the company said is the last wave of staff cutbacks it will need to undertake to reduce its expenses to a point where it can be cash-flow positive by mid-2023.

“The company believes its actions allow for a path to achieve positive free cash flow in 2023 accounting for market scenarios that are worse than Fannie Mae’s negative 22.6% estimate for residential real estate transaction volume (price and units) in 2023,” Compass said in an SEC filing, in which it noted its target yearly expenses are between $850 million and $950 million.

The brokerage did not say how many employees are affected in the latest round. The filing announcing the reductions said the move would incur $10 million to $12 million in severance costs, just under the $15 million to $16 million incurred when it laid off 450 employees last June.

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