News Summary
LendingTree has failed to meet its job creation targets under the Job Development Investment Grant program, resulting in the loss of state incentives for 2022 and 2023. Citing the company’s shortfall in hiring, the North Carolina Economic Investment Committee denied LendingTree access to potential grants amounting to $4.9 million. Despite maintaining a core workforce, the company has seen a significant drop in job creation amid a challenging market environment, although it continues to report impressive salaries for its employees.
Charlotte, NC – LendingTree, a financial technology firm headquartered in Charlotte, has failed to meet performance targets under the Job Development Investment Grant (JDIG) program and will not receive incentive grants for the years 2022 and 2023. The North Carolina Economic Investment Committee cited the company’s inability to achieve job creation goals as the primary reason for this decision.
LendingTree’s grant was connected to a 2016 agreement that committed the company to create 314 jobs at its office in Charlotte, which would have made it eligible for $4.9 million in state incentives. In 2022, the company fell short of this target, reaching only 63% of its hiring goal by adding just 198 jobs. The situation worsened in 2023, when LendingTree managed to create only 29 new positions, representing a mere 9.24% of its annual job creation objective. Though lendingTree struggled with bringing in new employees, the company met its requirement to maintain a workforce of 296 people in both years.
A spokesperson from the North Carolina Department of Commerce confirmed that while the JDIG agreement with LendingTree remains in effect, the company’s performance is not qualifying it for any incentive payments. The JDIG program is designed to issue cash grants to businesses that meet specific state-verified job creation and investment milestones over a standard duration of 12 years.
Compensation and Employment Statistics
Despite missing its job creation targets, LendingTree reported impressive salary figures. The company exceeded the required average annual wage of $81,857, posting average salaries of approximately $157,725 in 2022 and $200,658 in 2023. This high wage level helps highlight the company’s commitment to employee compensation, even in the face of workforce reductions.
Furthermore, LendingTree has recently faced significant challenges. In 2023, it reduced its workforce by over 30% citing a “difficult revenue environment.” Nevertheless, the company saw an increase in its revenue. In the first quarter of 2023, LendingTree recorded a revenue jump of 43%, growing from $167.80 million to $239.7 million compared to the same period in 2022. This sharp rise in revenue comes after a tumultuous decline in stock value from a high of $370 per share in 2018 to approximately $39 as of June 11, 2023.
Historical Context and Future Implications
This setback follows a previous JDIG agreement from 2018, which was intended to provide LendingTree with $8.37 million in incentives in exchange for creating 436 jobs over five years in Mecklenburg County. However, the company has since sought to terminate that agreement, further complicating its relationship with state economic development resources.
LendingTree has been a significant entity in the financial technology sector since its inception in 1996, specializing in linking borrowers with lenders for various financial products, including credit cards, mortgages, and personal loans. In 2021, the company moved its headquarters from Ballantyne to a new 175,000-square-foot facility in South End, Charlotte. Currently, LendingTree employs approximately 940 individuals across the company, with over 300 of those employees based in Charlotte.
The ongoing situation with job creation and economic incentives could influence LendingTree’s operations and strategic direction in the coming years as it navigates through a competitive and challenging market.
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Additional Resources
- Charlotte Observer
- Wikipedia: LendingTree
- MSN News
- Google Search: financial technology Charlotte
- WBTV News
- Encyclopedia Britannica: LendingTree
- WCNC News
- Google News: LendingTree Charlotte
- Business North Carolina
- Axios News
Author: HERE Charlotte
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