Another lender is resorting to layoffs as the mortgage market shrivels.

Returning towards the end of a business plan released Tuesday morning, loanDepot said it would lay off 4,800 people, or 42% of its workforce.

About 2,800 of them have already been sent packing as the company cuts its workforce to 6,500 from 11,300. With demand for mortgages falling, the company plans to pay out between 3.5 and 4 $.5 million in severance and benefits payments in the second quarter alone.

“After two years of record volumes, the market contracted sharply and sharply in 2022,” LoanDepot CEO Frank Martell said in a statement. “We are taking decisive action to meet this challenge head-on.”

The company expects to save between $375 million and $400 million a year by year-end through downsizing and other cost-cutting measures, such as cutting marketing, spending third parties and office space.

Additional changes involve centralizing the management of loan originations and execution.

LoanDepot aims to return to current profitability by the end of the year. The company is expected to release its second quarter results on August 9.

Layoffs in the home lending industry have become commonplace as rising mortgage rates and home prices and a shortage of listings have dampened demand for home loans.

Last week, Long Island-based Sprout Mortgage announced it was closing. It came just a week after Texas-based First Guarantee Mortgage essentially went out of business after making deep staff cuts.

Other companies cutting mortgage staff include JPMorgan Chase, Wells Fargo, Keller Williams and Better.com.

Still, the outlook for the LoanDepot layoffs is not good, as it follows LoanDepot founder Anthony Hsieh’s $30 million purchase of a Miami Beach waterfront mansion in January. . Hsieh also bought a unit at the One Thousand Museum in Miami for $19.5 million.