Compass (COMP) Reports Workforce Reduction

Compass (NYSE: COMP) disclosed:

On September 20, 2022, Compass, Inc. (the “Company”) took significant action towards achieving a non-GAAP operating expense level in 2023 of $1.05 billion to $1.15 billion with a workforce reduction (“Workforce Reduction”) as part of the Company’s cost reduction efforts previously highlighted on the Company’s August 15, 2022 earnings call. The Workforce Reduction is separate from and in addition to the strategic actions that were reported on the Company’s Form 8-K dated June 14, 2022.

The Company believes it is in a position to reduce its go forward investment in technology given the maturity of the Company’s technology platform. As a result, a significant portion of the Workforce Reduction involves reductions in headcount on the Company’s product and engineering team.

The Company currently estimates that as a result of the Workforce Reduction and non-material workforce reduction actions taken since the time the Company filed its June 14, 2022 Form 8-K (the “Non-Material Actions”), it will incur a pre-tax cash charge of approximately $23 million to $26 million for severance and other termination benefits for employees whose roles were or are being eliminated during the quarter ending September 30, 2022. The charge that the Company expects to incur in connection with the Workforce Reduction and the Non-Material Actions is subject to a number of assumptions, and actual expenses and results may differ materially from the Company’s estimates disclosed above.

This Item 2.05 contains forward-looking statements, including, but not limited to, statements related to the expected costs associated with the Workforce Reduction and the Non-Material Actions referenced here. These forward-looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the Workforce Reduction and the Non-Material Actions. A further description of the risks and uncertainties relating to the business of the Company is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”), and the Company’s subsequent quarterly and current reports filed with the SEC. The Company undertakes no duty or obligation to update any forward-looking statements contained in this Item 2.05 as a result of new information, future events or changes in its expectations.

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