Compass Shares Drop 10 percent on Workforce Cut Announcement

Compass, Inc. (NYSE:COMP) shares lost more than 10% on Tuesday following the company’s announcement, according to which it will reduce its workforce amid the housing slowdown.
The company said it is reducing its workforce by roughly 450 positions, or approximately 10% of the company. As part of the announcement, the company said it would wind down Modus Technologies, a wholly-owned title, and escrow software company, though the company did say it remained committed to offering title and escrow services in every market it operates.
The company named the workforce reduction and wind-down of Modus its ‘Strategic Actions.” According to the company, it is part of a broader plan to drive toward profitability and positive free cash flow.
Management also mentioned the following actions in pursuit of these goals: (1) reductions in U.S. hiring resulting from attrition, (2) a review of occupancy costs to reduce office and related costs, and (3) pausing M&A activity and new market expansions for the remainder of 2022.

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