Internet
LendingTree to Lay Off 440 Workers
TSC Staff
05/12/07 - 03:42 PM EDT
IAC/InterActiveCorp's(IACI) LendingTree unit is laying off 440 employees, or about 20% of its staff, according to a report late Friday on The Wall Street Journal's Web site.
The report attributed the news to a LendingTree spokeswoman, who said the company had to align its costs with the changing marketplace. LendingTree's Web site connects consumers with lenders, and the company receives its revenue from the latter group. The spokeswoman said lenders are now rejecting more loan applications, hurting the company's profit margins, according to the report.
Earlier this month, IAC/InterActiveCorp reported that first-quarter revenue at LendingTree dropped 12% to $100 million, while operating income before amortization fell 76% to $3.1 million.
Shares of IAC/InterActiveCorp ended Friday's session up 12 cents at $34.85.