Compass (NYSE:COMP) layoffs are a hot topic among traders on Friday as the real estate firm further reduces its headcount.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the Compass layoffs are part of the company’s cost reduction initiatives. The company is seeking to reduce costs to deal with the current macroeconomic environment.
Compass notes in the filing that it expects to suffer charges ranging from $10 million to $12 million due to the layoffs. That includes severance and other termination benefits and will be recorded in its first quarter 2023 earnings report.
The goal of these layoffs is to reduce Compass’ annualized non-GAAP operating expense level to between $850 million and $950 million. Doing so should allow the company to report positive free cash flow for 2023.
Compass Layoffs Started in 2022
Over the course of the last year, Compass has laid off employees three times when counting today’s news. It first dropped 450 corporate employees back in June 2022. Following that, another 750 people lost their jobs in October 2022.
Compass is far from the only company announcing layoffs lately. Several other tech names have also been cutting workers in an effort to reduce costs in 2023. This comes as inflation and a potential recession weigh on companies and consumers.
COMP stock is up 1.7% as of Friday morning.
Investors looking for more of the latest stock market news are in luck!
We’ve got them covered will all of the biggest stock stories worth knowing about on Friday! That includes everything happening with shares of DCP Midstream (NYSE:DCP), Mullen Automotive (NASDAQ:MULN) and Fate Therapeutics (NASDAQ:FATE) stock today. You can learn all about these topics at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.