Lending giant Upstart has laid off about 140 employees — or 7% of its total workforce — who help process loan applications, sources told TechCrunch.
The cloud-based AI lending platform notified its affected employees about the layoff on Tuesday. Upstart had about 2,000 employees, according to the company, which confirmed the layoffs.
“Given the challenging economy, we are making this difficult decision for the long-term health of the company. We do not expect any further layoffs, and continue to hire for roles that are strategic to our business,” Upstart spokesperson Mike Nelson said in a statement.
Upstart said in its latest 8-K filing with the U.S. Securities and Exchange Commission that the decision was due to ongoing economic challenges and the “reduction in the volume of loans” on its platform. However, the company would not confirm the exact drop in its loan volumes.
