LendingClub to cut 225 jobs
US peer-to-peer lending pioneer LendingClub has decided to cut 225 jobs in light of reduced demand for its loans.
The former P2P platform, which has since pivoted into a neobank and consumer lender, said it is streamlining its operations by 14 per cent to align with “reduced marketplace revenue following the Federal Reserve’s historic pace of interest rate increases”.
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The job cuts are expected to result in annualised run-rate savings of between $15m (£12.3m) and $30m in 2023.
LendingClub already cut 30 per cent of its workforce (460 people) in April 2020, blaming the “unprecedented effect” of Covid-19 on loan demand.
It later went on to stop offering retail P2P investment at the end of 2020 as it moved towards becoming a bank holding company following an agreement to acquire Radius Bancorp.
The platform’s loan originations dropped from $3.129bn in the second quarter of 2019 to $325.8m in April, May and June 2020.
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The firm said it originated $2.5bn in loans in the fourth quarter of 2022 and expects revenue of between $260m and $263m, with net income of between $21m and $24m.
“These measures enable us to more closely align our expense structure to loan volume and revenue, while ensuring effective execution against our strategic priorities and long-term vision”, said LendingClub chief executive Scott Sanborn.
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