Compass announced this week that it has conducted another round of layoffs, en route to its goal of becoming profitable.
I think for stockholders this is a good sign, for those getting laid off this is obviously bad news.
Read more Compass news stories
“The Company believes it is in a position to reduce its go forward investment in technology given the maturity of the Company’s technology platform,” it said in an SEC filing Tuesday. “As a result, a significant portion of the Workforce Reduction involves reductions in headcount on the Company’s product and engineering team.”
Compass has stated that it has invested $900 million in its tech platform, but it’s unclear what the breakdown of those expenditures is, and industry rivals have long questioned the return on that investment.
Compass went too far with their technology, bottom line technology doesn’t sell Boston condos, people do. I’m glad to hear no real estate sales agents aren’t getting laid-off.
Read more Compass stories some my shock you.
Compass did not provide specifics on the number of layoffs, but they are likely to be substantial given that they necessitated an SEC filing and that the filing noted costs of between $23 million and $26 million for severance and termination benefits. The company plans to cut its expenses by $320 million this year.
I think Compass needs to make these big changes, I’m glad they are now recognizing their not a tech company.
Read the truth about Compass Financial condition
No. To date it has lost $800 million.