Compass stock sinks after plan to cut 450 jobs, close a title and escrow software business

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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, -4.91% 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, -0.38% has tumbled 21.4%.

This article was originally published by Marketwatch.com. Read the original article here.

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