Doma is laying off another large group of employees as title insurance companies navigate the changing residential real estate market.
Digital title insurance provider lays off 250 employees, Inman reportThe cuts come just three months after an even bigger layoff that cut 310 employees in May.
Overall, the company expects the 561 employee layoffs to translate into $70 million in annual cost savings.
Doma CEO Max Simkoff said: Earnings Announcement on August 9.
The company has posted increasingly disastrous losses each quarter since the outbreak of the pandemic. Doma’s net loss for the third quarter of 2020 was $3.6 million, while the company has posted losses of $50 million each in the last two quarters, followed by him at $58.7 million.
That’s probably not what Simkoff wanted when his firm, formerly known as States Title, merged with the Capitol Investment Corporation-backed blank check firm. Publish last year. Doma’s situation worsened shortly after he signed a deal with a special-purpose acquisition company that required him to pay his $295 million to early investors who redeemed their shares before the stock price plummeted, making it more expensive than expected. Less fundraising. Inman.
The company was founded in 2016 with the goal of using machine learning to automate 70% of the manual work required in traditional title insurance processes.But mortgage refinancing has become increasingly undesirable for homeowners in recent months. reached the lowest level this century.
The company plans to put more effort into buying mortgages. Simkoff said management believes the company will post positive adjusted earnings by the end of next year at the latest.
Doma isn’t the only company struggling to keep its workforce together as the tide shifts in the mortgage market. The industry has been plagued by a number of layoffs in recent months, with some mortgage lenders shutting down altogether.
blend lab recently cut 220 We’ve cut about 25% of our workforce this year, right after we cut 200 people. Other companies slashing their mortgage sector include JPMorgan Chase, Wells Fargo, Mr. Cooper, Tomo, Homelight, Keller Williams, Movement Mortgage and Better.com.
— Holden Walter Warner