Compass to cut jobs, record charges of up to $26 million

Shares of Compass Inc. rallied 2.2% in premarket trading Tuesday, after the online real estate platform said it will cut jobs as part of a cost-cutting plan. The company did not detail the number of employees that will be laid off, but said a “significant portion” will in the product and engineering team. The company said it will record a charge of $23 million to $26 million for severance and other termination benefits. The company had 4,775 employees as of Dec. 31. The company said it targets a reduction in adjusted operating expenses to $1.05 billion to $1.15 billion. The stock has tumbled 29.2% over the past three months through Monday, while the S&P 500 SPX, -1.16% has gained 6.1%.