Real estate companies Compass and Redfin are planning to cut their workforces since housing sales dropped.
Both companies submitted filings with the Securities and Exchange Commission showing the layoffs.
Compass said they would be laying off 10 percent of workers, 450 employees, while Redfin is firing six percent, 470 employees.
Redfin CEO Glenn Kelman said in an article on the site that the company “had to” lay off employees as the economy “could be facing years, not months, of fewer home sales.”
“To all the departing people who put your faith in Redfin, I’m sorry we can’t keep our commitment to you. With May demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leaves us with less money for headquarters projects,” he added.
Compass cited “slowing economic growth” in its reasoning to cut employees, a spokesman for the company said in a statement to CNBC.
“Due to the clear signals of slowing economic growth we’ve taken a number of measures to safeguard our business and reduce costs, including pausing expansion efforts and the difficult decision to reduce the size of our employee team by approximately 10%,” a Compass spokesperson said.
The Hill has reached out to Redfin and Compass for comment.