LendingTree, an online lending marketplace, announced plans to lay off approximately 200 employees, due to rising interest rates and inflation. In a November 3rd letter to shareholders, the company also revealed that the headcount has now been reduced by over 20% from its peak in mid-2021, leaving the company with approximately 1,407 employees as of June 2022.
LendingTree, based in Charlotte, cut around 200 jobs across the company in the face of a rising interest rate environment. The cuts were disclosed in a letter to shareholders on November 3rd. This is just the most recent event in a series of layoffs, with others like LendingClub eliminating 14% of their workforce in mid-January.
This also isn’t the only massive layoff for LendingTree. Compared to its workforce in mid-2021, the marketplace has had to lay off over 20% of its employees. According to a letter to its shareholders, LendingTree commented that:
Elevated interest rates and inflation at 40-year highs in the U.S. further pressured consumer demand for mortgage loans and carrier appetite for new insurance policies. Managing our non-marketing operating expenses remains a top priority, and we held these flat in the third quarter compared to the prior year.”
According to LinkedIn posts, the positions affected included software engineers, marketing, analytics, and operations.
In Q3 2022, LendingTree reported a net loss of $158.7 million, or $12.44 per diluted share. This followed losses of $8 million in Q2 and $4.4 million in Q3 2021. Its revenue in Q3 2022 was $237.8 million, down from $297.4 million in the same quarter the previous year and $261.9 million in Q2 2022.
LendingTree stated in a letter to shareholders that it was committed to generating positive operating leverage and had completed a review of its fixed costs after the quarter-end. The company also identified third-party cost-saving opportunities and savings totaling $25 million to be used in its growth strategy for 2023.
LendingTree was not the only mortgage lender to reduce its headcount in 2022. Other companies such as Real Genius, Movement Mortgage, and Better.com have also cut jobs due to the challenging environment.
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