Compass Lays off 350 employees

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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