Title insurer Doma will lay off approximately 515 employees, or 40% of its workforce, as part of a plan to cut costs significantly.
With the terminations, the San Francisco-based company intends to generate annual compensation expense savings between $85 million to $90 million, according to a Securities and Exchange Commission filing dated Dec. 2 and posted Tuesday. The firm will also exit leased facilities, incurring additional undetermined expenses, it said.
Doma anticipates $9 million to $10 million in employment-related charges including cash expenditures for benefits, severance and payroll taxes offset by forfeiture of bonus and stock-based compensation, according to the disclosure. The changes are expected to be completed in the first quarter of next year, a spokesperson for Doma confirmed in a statement Wednesday.
"It was a tough day, and Doma is extremely sensitive to those impacted," the statement said. "This reduction in workforce, along with corresponding long-term facility related cost savings, are aligned with Doma's accelerated profitability objective."
CEO Maxwell Simkoff also voluntarily agreed to cancel his previous award of 701,010 performance restricted stock units for the period between January 1, 2021 and Dec. 31, 2023, according to the filing. The award was previously granted to him under an incentive plan last October.
Doma reported
Doma last month said it would push to achieve profitability for the non-GAAP metric of adjusted earnings before interest, taxes, depreciation and amortization. The firm did not specifically mention layoffs in its third quarter earnings report, but in July
Title underwriters have