Compass plans to cut more jobs by the end of September, according to an email from CEO Robert Reffkin. Authentic.
The layoffs will affect roles that “do not affect agents,” said a spokesperson for the housing broker. In an email sent to employees ahead of Monday’s earnings call, Lefkin said jobs affected would “focus on roles outside of regional operations teams.”
Housing brokerage lost $101 million In the second quarter, we hit about $300 million in the first half.
A spokeswoman declined to comment on how many employees would lose their jobs, but said it would be a series of cuts. According to Lefkin’s letter, most of the layoffs will take place by October.
“We are aware that this timing shift is causing concern to many and we apologize,” Lefkin wrote, with Compass planning a team meeting at the end of September to discuss “the way forward together.” added.
Compass also made sure the company didn’t impact broker support in June. announced Lefkin said in a letter at the time that it was laying off 10% of its staff, about 450 employees who “do not directly support the agency.”
In a recent letter to employees, Reffkin blamed rising interest rates for hurting Compass’ earnings. Nationwide home sales have slowed this year. In its latest earnings report, Compass forecasts annual revenue for 2022 of $6.15 billion to $6.45 billion, up from his previous guidance of $7.6 billion to $8 billion. is well below
“We are now gearing up to see the property market this year nearly 25% below what industry experts expected just six months ago,” he wrote. “When I was at his Compass, the market had never seen such a big drop in such a short period of time.”
Compass isn’t the only company suffering from a market slowdown.redfin 470 employees laid off, or 8% of its staff, in June.Side, the brokerage startup that achieved unicorn status last year, lay off 10% of the workforceor 44 employees.
The mortgage industry has also been hit hard.At least 10 companies with more than 4,000 employees dismissed Since the beginning of the year, including major financial institutions such as JP Morgan Chase and Wells Fargo,