Compass announces tech layoffs as housing market slows

In an effort to reduce business costs in a context downturn in the housing marketNew York-based immovable The Compass company is undergoing a series of layoffs which will mainly affect its technology team.

News of the layoffs was made public through a Filing with the Securities and Exchange Commission Tuesday, in which Compass called its upcoming workforce reduction a “significant action” necessitated by cost-cutting efforts highlighted in a mid-August earnings report.

“A significant part of the workforce reduction involves staff reductions within the company’s product and engineering team,” Compass said in the SEC filing.

About 3,000 of the company’s 21,636 employees are based in the bay area, according 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 merging the tech and real estate industries by using technology to simplify the process of buying or selling property – a platform that is now advanced enough to warrant layoffs in the department company technology. The filing says the company expects costs of $23 million to $26 million related to severance and other expenses associated with laying off affected employees.

This is Compass’ second round of layoffs in recent months – the company laid off about 450 people in June, mainly due to “clear signals of slowing economic growth,” a spokesperson for Compass previously told SFGATE. Redfin also laid off hundreds of employees around this time, and laid off an undisclosed number of employees earlier this month due to slowing sales volume in the real estate market.

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