Compass to lay off marketing, IT and M&A staffers

Like other SoftBank-backed startups, brokerage is making changes to the model

TRD NATIONAL /
Jan.January 27, 2020 04:52 PM
Robert Reffkin and Kristen Ankerbrandt

Compass CEO Robert Reffkin and CFO Kristen Ankerbrandt

UPDATED, January 27, 6:10 p.m.: Compass is laying off up to 40 employees across its IT, marketing and M&A teams, the company confirmed Monday.

Sources said the move, which is taking place this week, is part of a broader reorganization as the SoftBank-backed company consolidates roles that service agents. The sources said Compass will create a new team called the “Agent Experience Team” to replace teams of employees who onboarded new agents, train them on the Compass platform and staff the IT help desk. The cuts are taking place nationwide.

The layoffs represent a fraction of the New York-based firm’s 2,500 workforce. At latest count, the company has 18,000 agents and staff across the U.S.

Sources said jobs will also be cut from Compass’ M&A team, since the residential brokerage isn’t currently pursuing deals. In recent years, Compass has grown through strategic acquisitions with firms like Pacific Union International in San Francisco and Stribling & Associates in Manhattan.

This week’s cuts punctuate a period of massive growth for Compass, which in 2017 announced a plan to have 20 percent market share in 20 major U.S. cities by 2020. Late last year, Compass CEO Robert Reffkin conceded in a companywide letter that the company has not yet reached that target. While it has captured 20 percent of the market in cities like San Francisco and Washington, D.C., Reffkin said Compass hit 10 percent market share in “many more markets, which is major progress towards our 2020 by 2020 target.”

However, Compass’ grow-at-all-costs approach has become a thing of the past.

Last year, the brokerage said it would pump the breaks on its expansion to new markets, instead focusing on its existing markets. In the wake of WeWork’s failed IPO, Compass sought to distance itself from the co-working firm and found itself defending a $6.4 billion valuation.

In a statement, Rob Lehman, Compass’ chief business officer, said: “We are continuing to invest and grow at the same rate we always have, and we expect to increase our headcount every month this year.”

Write to E.B. Solomont at [email protected] 


Related Articles

arrow_forward_ios
Daily Digest Miami

Monroe County seeks $150M to combat sea level rise, Bloomberg’s record may polarize voters

Daily Digest Miami

Compass sweetens agent stock program for 2020, affordable housing project in downtown Fort Lauderdale lands $27M loan: Daily digest

Daily Digest Miami

Panattoni drops $24M to build new industrial project near Opa-locka, One Sotheby’s International Realty acquired Treasure Coast Sotheby’s: Daily digest

Daily Digest Miami

Saks makes bid for Barneys, Eighty Seven Park will offer a certified botanist: Daily digest

SoftBank launches $5B Latin America fund led by former Sprint CEO

SoftBank launches $5B Latin America fund led by former Sprint CEO

Softbank CFO sells luxury condo at Surf Club in Surfside

Softbank CFO sells luxury condo at Surf Club in Surfside

Cadre seeks at least $100M from SoftBank

Cadre seeks at least $100M from SoftBank

SoftBank Group Corp Chairman and CEO Masayoshi Son attends a news conference in Tokyo, Japan, February 8, 2017. SoftBank Group Corp. holds its earnings results briefing on November 6, 2017 (JST), for the second quarter (April - September, 2017) of the fiscal year ending March 31, 2018.  (Photo by Alessandro Di Ciommo/NurPhoto via Getty Images)

Softbank is making splashy real estate plays. But will they pan out?

arrow_forward_ios
Loading...