National Real Estate Company Adding Agents in RI, But Making Massive Cutbacks as Stock Plummets

National Real Estate Company Adding Agents in RI, But Making Massive Cutbacks as Stock Plummets

Compass, the national tech real estate company, has been signing up agents in Rhode Island.  It previously purchased Lila Delman in 2021.

However, Business Insider has a report about how Compass’ tech platform is suffering after the company slashed about half of its tech stock in less than a year.

“Compass' dramatic cuts to its technology team will deal a heavy blow to the company's vaunted software platform, four former engineers at the firm told Insider.  The real-estate brokerage gutted 50% of its roughly 1,500-person technology team in a round of cutbacks in September, its second major staff downsizing this year as the residential sales market has slowed,” reported Business Insider on Tuesday.

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On Wednesday, Compass’ stock was trading at $2.71 — a 70% loss of value on the year.

Locally, the company has added a number of agents in the past month (see people on the move below).

Compass, which lost roughly $6 billion in value since its 2021 IPO.

“Compass' CEO, Robert Reffkin, had for years evangelized the company's tech tools, claiming that they help its roughly 28,000 real-estate agents more efficiently communicate with clients, advertise the homes they're selling, and speed through the tedium and logistics of closing sales deals,” wrote Business Insider.

“Since going public, the company has continued to bleed losses that have threatened to further accelerate amid the colliding factors of rising interest rates and years of home-price appreciation,” BI added.