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December 14, 2007
LendingTree has laid off 220 employees at its offices in Irvine, Jacksonville, Fla., and Charlotte, N.C., where the company is based, with a majority of the layoffs occurring in Irvine.
The online lending and realty-services exchange cites the slump in the mortgage industry for the cuts.
Affected employees will receive severance packages, a spokeswoman says.
LendingTree cut staffing by 440 in May and 250 in September. The company now has about 1,000 employees.
In the third quarter, LendingTree posted a $5.6 million operating-income loss. In the same period last year, the company's operating income totaled $15.2 million.
Revenue at LendingTree fell 41 percent to $63 million from $106 million in the year-ago period.
The company says sales dropped primarily because of a decline in loans sold to the secondary market, lower revenue per loan sold and the closing of fewer loans.
Profits were also affected by an $8.2 million provision for loan losses in the latest quarter, up from $700,000 in the year-ago period.
The higher provision reflects the increased losses the company is experiencing with respect to loans sold.
Last month, parent company IAC/InterActiveCorp of New York (NASDAQ:IACI), announced LendingTree will become a publicly traded company as IAC spins off five businesses, which also includes West Hollywood's Ticketmaster. The spinoffs are to be completed in the second or third quarter of next year.
LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loans since it started operations in 1998.
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