Shares of Compass Inc. dropped 6.1% in afternoon trading Tuesday, after the online real estate platform said it was cutting about 450 jobs, or 10% of its workforce, as part of a restructuring aimed at cutting costs and align its organization structure with its business strategy. The company also said it planned to wind-down its title and escrow software company, Modus Technologies Inc. Compass expects to record charges of $21.5 million to $23.0 million during the current quarter ending June 30, including $15 million to $16 million charges for severance and other termination benefits. The company isn’t the only real estate platform laying off employees, amid signs of a slowdown in the housing market. Redfin Corp.
RDFN,
also said Tuesday that it was cutting about 470 jobs, or 6% of its workforce. Compass’s stock, which has plunged 27.8% amid a four-day losing streak, has plummeted 50.8% year to date, while the S&P 500
SPX,
has tumbled 21.4%.
