Kiavi Layoffs

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Kiavi, a non-QM lender specializing in fix-and-flip and investor loans, laid off 39 employees, representing about 7% of its workforce of over 300. The layoffs, announced in mid-July, were part of cost-cutting measures to protect the company's financial health amid rising interest rates. According to internal communications, the decision was driven by challenges in the hard money lending space, where higher rates have reduced investor appetite for their assets, forcing Kiavi to halt plans for construction loans. The cuts affected multiple departments, including human resources, operations, and finance, with impacted employees receiving 12 weeks of severance. Despite recent expansion and a major securitization deal, the company cited the need to ensure sufficient cash flow for 2023 as a key reason for the restructuring.

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