More Cost-Cutting for Compass — Dumping Its NYC HQ

More Cost-Cutting for Compass — Dumping Its NYC HQ

The Real Deal reported that real-estate company Compass was looking to sublease its 89,000-square-foot office space at 90 Fifth Avenue near Union Square on Thursday. 

The same day, Compass also announced it was conducting its third round of layoffs this year; in an SEC filing, the company wrote that layoffs would “allow for a path to achieve positive free cash flow in 2023.”

Compass is a real estate firm that grew to be a major player due to its promise of building better technology. But the fast growth and big spending came back to earth in 2022. In Rhode Island, the firm purchased Lila Delman and has been signing agents

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As GoLocal reported Friday, Compass announced another round of layoffs.

The company said it is the "last wave" of staff cutbacks it will need to undertake to reduce its expenses to a point where it can be cash-flow positive by mid-2023.

But the company laid off 450 last January and hundreds more in September.

“The company believes its actions allow for a path to achieve positive free cash flow in 2023 accounting for market scenarios that are worse than Fannie Mae’s negative 22.6% estimate for residential real estate transaction volume (price and units) in 2023,” Compass said in an SEC filing, in which it noted its target yearly expenses are between $850 million and $950 million.