The Bank Slate


LendingClub moves ahead with new round of job cuts

LendingClub in San Francisco has cut more jobs.

The online lender said it will lay off 172 employees, or roughly 14% of its workforce. The cuts come months after the company eliminated 225 positions in January.

The company disclosed in a regulatory filing that it had eliminated the position of chief administrative officer currently held by Brandon Pace. Pace, who joined LendingClub in 2016, will be paid about $417,000 in severance.

LendinClub is pointing to rising interest rates that have pressured revenue.

“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,” CEO Scott Sanborn said in a. “To that end, we have made the very difficult decision to streamline our workforce.”

The lender said it expects the layoffs to reduce annual expenses by $30 million to $35 million.

LendingClub said it originated about $1.5 billion of loans in the third quarter, down from $2 billion a quarter earlier.

The company also said it expects to generate $198 million to $200 million of revenue in the third quarter, contributing to net income of $4 million to $5 million.

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