Six weeks after the companies merged to form a giant brokerage firm, layoffs began at both brands last week and continued this week, multiple past and present employees of both companies told Inman.
Ryan Schneider isn’t alone.
Six weeks after Compass completed its acquisition of Anywhere Real Estate, multiple current and former employees confirmed to Inman that layoffs have continued at both brands in recent days.
The scope and intent of the job cuts were not immediately clear, but sources said they were being made at various levels at both companies. One source told Inman that the layoffs are “widespread” and affect “the entire team,” adding that “no one knows who to go to anymore.”
In response to Inman’s question about job cuts, Compass acknowledged that “adjustments” were underway.
A spokesperson for Compass International Holdings said: “We continually assess the needs of our business in order to effectively align our resources and focus on areas that create the most value for real estate professionals.” “Post-merger adjustments are being made to strengthen our business and focus on our strategic priorities.”
Inman spoke with employees who are still working at both companies, as well as several who were laid off Wednesday. The former and current employees, many of whom worked on software engineering teams at both companies, asked to speak on condition of anonymity to discuss personnel matters.
The employee transfers appear to be happening in near real time, with some employees acknowledging they received word Wednesday that they were still employed, while others received notice of termination the same day. Mr. Inman first received word last week that the layoffs had begun.
“There has been no direct communication from Compass management about layoffs or changes in priorities post-merger, and many are feeling lost,” one existing employee told Inman.
Two employees said there has been no company-wide announcement about the ongoing changes. Some say even team managers don’t seem to know what’s 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 merger.
The changes also come as Compass International Holdings Inc. forms a management team after forming the giant brokerage firm.
Still, several affected Compass employees said they were caught by surprise.
“Compass employees were told they would be safe during the merger, so this is a huge shock to everyone,” said one now former Compass employee, who requested anonymity. “This is a surprise to all of us, as we were understaffed for this year’s large-scale efforts anyway.”
The ongoing layoffs also follow several recent changes in the company’s management team.
Earlier this month, Inman first reported that former Anywhere CEO Ryan Schneider was leaving the company in the wake of the merger.
Compass International Holdings confirmed to Inman that Schneider left the company upon closing “in accordance with the terms of the merger agreement.”
Rudy Wolfs, Anywhere’s chief technology officer, also left the company after the deal closed, the company confirmed.
Tim Gustafson, Anywhere’s chief accounting officer, was appointed this week to the same position within Compass International Holdings, effective Monday.
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