On August 9, 2023, Blend Labs, Inc. committed to a fifth workforce reduction plan (the ?August 2023 Plan?) in addition to the workforce reduction plans disclosed on January 10, 2023, November 9, 2022, August 15, 2022 and April 18, 2022. The August 2023 Plan further streamlines the Company?s title operations, as well as its corporate operations in research and development, sales and marketing, and general and administrative functions. The August 2023 Plan includes the elimination of approximately 150 current positions, or approximately 19% of the Company?s current onshore workforce, and approximately 20 vacancies across the Company.

The Company estimates that it will incur approximately $7.2 million in charges in connection with the August 2023 Plan, consisting of cash expenditures for severance payments, employee benefits, payroll taxes and related facilitation costs. The Company expects that execution of the August 2023 Plan, including cash payments, will be substantially complete in the third quarter of 2023. The eliminated positions represent annualized compensation expenses of approximately $33 million.