Upstart Holdings in San Mateo, Calif., is the latest fintech to lay off a large percentage of its workforce.
The company disclosed in a regulatory filing that it will cut 20% of its staff, or roughly 365 people, by March 31. The move is designed to reduce operating costs, streamline operations and return the company to profitability.
Upstart said it expects to incur about $15 million of total charges tied to the layoffs. It also expects to recognize about $3 million of one-time noncash savings tied to the reversal of previously expensed stock-based compensation associated with forfeited stock awards.
Upstart said it should realize about $57 million of cash savings over the next 12 months. It should also realize noncash savings of roughly $42 million tied to stock-based compensation through 2025.
Upstart said it also plans to suspend the development of its small business loan product “until macroeconomic conditions improve.”