Layoffs are happening at Compass and elsewhere weeks after the merger
Six weeks after the two companies merged into a mega brokerage, layoffs at both brands began last week and continued this week, multiple former and current employees of both companies told Inman.
It’s not just Ryan Schneider.
Six weeks after Compass closed upon the takeover of Anywhere Real Estate, multiple current and former employees confirmed to Inman that layoffs have been ongoing at both brands in recent days.
While the extent and intent of the cuts are not immediately clear, the layoffs are happening at many levels of both companies, according to several sources. One source added to Inman that the cuts were “widespread” and affected “entire teams,” meaning “nobody knows who to go to anymore.”
In response to Inman’s questions about the layoffs, Compass confirmed that there were ongoing “adjustments.”
“We continually assess our business needs to effectively align resources and focus on the areas that will create the most value for our real estate professionals,” said a spokesperson for Compass International Holdings. “Post-merger, adjustments will be made to strengthen our operations and focus on our strategic priorities.”
Inman heard from employees who still work at each of the two companies, and some who were laid off as recently as Wednesday. The former and current employees, many of whom worked on both companies’ software engineering teams, asked to speak on condition of anonymity to discuss human resources matters.
The workforce changes appear to be happening in almost real time, with some employees confirming that they were told on Wednesday that they were still employed, while others were informed that they were being laid off the same day. Inman first received a tip last week that layoffs had begun.
“There has been no direct communication from Compass leadership about the layoffs or how priorities are shifting post-merger, which has left many people feeling in the dark,” an existing employee told Inman.
Two employees said there has been no company-wide announcement about the ongoing changes. Others said even team managers seem to be in the dark about what is changing.
In some ways, the cuts were not unexpected. When the proposed merger was first announced, Compass said it expected to realize more than $225 million in “synergies” and other efficiencies within three years of the combination.
The change also comes as Compass International Holdings appoints its leadership team after assembling the mega brokerage.
Still, several affected Compass employees said they were caught off guard.
“We were told that Compass employees would be safe during the merger, so this is a big shock to everyone,” said a now-former Compass employee, who spoke on condition of anonymity. “We didn’t have enough staff for the big initiatives this year anyway, so it’s a surprise for all of us.”
The ongoing layoffs also follow several recent changes in the company’s leadership.
Earlier this month, Inman first reported that former Anywhere CEO Ryan Schneider had left the company in the wake of the merger.
Compass International Holdings confirmed to Inman that Schneider left “in accordance with the terms of the merger agreement” when the deal closed.
Rudy Wolfs, Anywhere’s Chief Technology Officer, also left the company after closing the deal, the company confirmed.
Anywhere Chief Accounting Officer Tim Gustavson was appointed to the same position within Compass International Holdings this week, effective Monday.
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