The lending club recently announced a layoff of 225 employees from their company which means around 14% of the workforce from their overall headcount.
LendingClub plans to reduce its workforce by 14%, or 225 employees. The company expects to incur charges of around $5.7 million of which $4.4 million was expensed in the fourth quarter. The company anticipates the workforce reductions will result in annualized run-rate savings in compensation and benefits of about $25 million to $30 million in 2023.
“We remain committed to championing the financial success of our customers while generating long-term profitable growth amid an increasingly challenging economic environment,” said Scott Sanborn, LendingClub’s CEO. “We have proactively implemented various measures to make this happen, including the very difficult decision to reorganize and reduce our workforce. 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.”