Posted on August 17, 2022
Blend Labs executives say they are being conservative in managing the company after recording a massive financial loss in the second quarter of 2022.
The California-based mortgage tech company plans to reduce costs, including cutting 25% of its workforce, and will focus on products with a higher return on investment amid an extreme market downturn.
“We’re operating the company prudently as if the mortgage industry origination volumes will remain at or near historic low levels through 2025,” Nima Ghamsari, Blend’s co-founder, said in an earnings call on Monday.
Blend Labs reported a $478.4 million loss in the second quarter, following a $73.5 million loss in the first quarter. The result reflects a $392 million impairment of intangible assets and goodwill related to an update in the fair value of Title365, a company acquired in 2021.
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