Compass, Redfin Shed Workers Amid Bleak Housing MarketThe real estate brokerages
Compass and Redfin announced large layoffs as housing demand plummets, causing their shares to tumble.
Compass will fire about
450 employees, 10% of its workforce, while Redfin plans to lay off about
470 employees, or 8% of its workers, according to respective filings with the Securities and Exchange Commission.
Redfin CEO Glenn Kelman wrote in a blog post,
“we don’t have enough work for our agents and support staff,” noting
“May demand [was] 17% below expectations.”Shares of
Redfin fell 4.6% to $8.15, an all-time low for the stock and a 91.6% drop from the stock’s record closing high of $96.59 reached last February.
Compass shares dipped 8.8% to $4.34 and are down 54.6% year-to-date and 78.5% from their peak.
