LendingClub to slash more jobs
Former peer-to-peer lending platform LendingClub is set to reduce its workforce by 14 per cent, in the second round of staffing cuts this year.
The US-based digital bank and online lender said that the job cuts are an effort to save $30m (£24.6m) to $35m in costs amid “ongoing macroeconomic headwinds.”
Earlier this year, the platform cut 225 jobs in light of reduced demand for its loans and interest rate increases.
“We continue to proactively implement various measures to navigate the persistent and ongoing macroeconomic headwinds and the resulting pressure in our marketplace, primarily driven by higher interest rates,” said Scott Sanborn, chief executive of LendingClub.
“To that end, we have made the very difficult decision to streamline our workforce.
“Longer term, we expect marketplace revenue to rebound as we capture the historically large credit card debt refinancing opportunity.”
According to the company’s preliminary results, revenues were approximately $200m in the third quarter of this year, with net income of $5m. Loan originations during the quarter were around $1.5bn.
LendingClub was founded in 2006 and became the first P2P lending platform in the US. However, it stopped 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.
Read more: US P2P market: Land of opportunity
