Compass Announces a Second Major Round of Layoffs - Firm Owns Lila Delman in RI
Wednesday, September 21, 2022
The national real estate firm Compass, which bought Lila Delman in January of 2021, has announced its second major round of layoffs in just four months.
In June, the company laid off 450, and the round announced this week is expected to be larger due to the amount of the write-down the company announced.
When the company announced the June layoffs, SEC filings booked $15 to $16 million in severance costs.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn this round of cuts, Compass’s SEC filing noted the costs for severance and termination benefits of between $23 million and $26 million.
“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.”
These two rounds of layoffs come during one of the most turbulent times in real estate. In some portions of the country, housing prices are declining.
In Rhode Island, the median price of a single-family home is still at a record level — $410,000.
Inventory continues to be at record low levels. And, interest rates for a 30-year fixed have jumped up to more than 6% — the highest level in more than a decade. And, the Federal Reserve has announced another interest rate increase of 75 basis points.
