BAM’s Key Details:
- In a memo on January 5th, Compass CEO Robert Reffkin told staff it would be conducting more layoffs.
- While the size of the layoffs is still unknown, this is the third round of layoffs by Compass in the past eight months.
The new year has just begun, and layoffs are being announced across all industries as companies work to make cuts in 2023.
Round Three of Compass Layoffs
In an email to staff on January 5th, Compass CEO Robert Reffkin announced the company is conducting its third round of layoffs in the past eight months. In June 2022, Compass laid off 450 employees, followed by an additional 750 people in October 2022. The number of people being laid off this week is unknown.
In the email, Reffkin stated:
We’ve been focused over the last year on controlling our costs. As part of that work, today we reduced the size of some of our employee teams. While decisions like these are always hard, they are prudent and allow us to continue to build a long-term, successful business for all of you.
More Layoffs Expected in 2023
Major companies across the country started laying off employees toward the end of 2022, and it is expected that layoffs will continue this year.
Aside from Compass, the following companies have announced cuts to their workforces this week alone:
- Amazon: 18,000 employees
- Salesforce: 10% of its staff
- Vimeo: 11% of its workforce
- Goldman Sachs: up to 8% of employees
- Stitch Fix: 20% of salaried jobs
With workforce reductions and an uncertain housing market, there’s no doubt that more professionals in the real estate industry will be affected in 2023. How are you preparing for what’s to come?