Upstart Holdings Inc. said it is laying off about 365 employees, or 20% of the company’s staff, and halting the development of its small business loan product as it looks to slash costs and streamline operations.
The online lender joins a wave of companies across tech and other sectors that laid staff off in recent weeks, citing macroeconomic uncertainty. Upstart cited challenging macroeconomic conditions and said lenders as well as credit investors have “significantly reduced or paused loan originations.” The company said it expects to book about $15 million in charges tied to the layoffs.
The company said it also plans to halt the development of its small business loan product “until macroeconomic conditions improve.” San Mateo, Calif.-based Upstart offers personal loans based on a machine-learning-powered credit-scoring model that it says can identify reliable borrowers with tarnished credit histories. The company was a pandemic darling as its stock price surged to nearly $400 a share.