JANUARY 11, 2023 — 20% OF THE WORKFORCE TO BE LAID OFF TO ACCELERATE THE PATH TO PROFITABILITY
Along with a management shake-up, Blend embarks on layoffs impacting approximately 340 employees.
According to a company statement, “Today, we’re announcing a comprehensive set of initiatives that affirms and accelerates our previously communicated path to profitability, including enabling Blend to realize enhanced gross margins from our Blend Platform offerings, including mortgage banking, beginning as soon as the second half of 2023.
“A key step in that effort is the significant reduction in our overall expenses. This move requires the very difficult but necessary decision to say goodbye to many talented people as we align the organization for market realities and prepare for future growth.”
MAY 10, 2022 — Original post…
San Francisco, California-based Blend Labs, a technology firm specializing in the development of cloud-based software platforms for the financial services industry, has announced a ten-percent reduction in force to realign staff and market conditions.
The layoff will impact approximately 200 positions across the company and is expected to be completed by the second quarter of 2022. The decision was driven by market conditions, including rising interest rates and lower mortgage origination and re-finance volumes.
Nima Ghamsari, founder and chief executive officer of Blend, noted, "Some of our operational businesses, such as our title insurance agency in particular, are seeing the negative impact of higher rates and reduced refinance activity. As a result, we made the difficult decision to lay off about 10% of our employees. Making these decisions is never easy, but we are committed to making our employees’ transition as smooth as possible.
Most of the decisions we made were a function of changes in refinance volumes. With lower volumes, we need fewer people to execute and support those businesses. However, we are committed to continuing to serve you in the way you have come to expect from Blend. In fact, we believe that our renewed focus on the technology that makes Blend special will make us an even more valued partner to you.”
According to a statement filed with the Securities and Exchange Commission, the company is "committed to a workforce reduction plan (the “Plan”) as part of its broader efforts to improve cost efficiency and better align its operating structure with its business activities. The focus of the Plan is on streamlining the Company’s title operations as well as its general and administrative functions. The Plan includes the elimination of approximately 200 positions across the Company or approximately 10% of the Company’s current workforce."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
