The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Consumer lender Oportun unveils new round of layoffs

Oportun Financial in San Carlos, Calif., plans to lay off nearly a fifth of its corporate staff.

The consumer lender said that it will cut 185 jobs as part of a broader cost-cutting effort. Oportun also plans to reduce expenditures on external contractors and vendors.

The moves should save the company about $80 million annually.

Oportun expects to incur $7 million to $8 million of one-time charges in the fourth quarter, consisting primarily of severance payments, employee benefits contributions and related costs.

Oportun said that CEO Raul Vazquez requested that his base salary be reduced by 15%, to $595,000.

The company also said it is “exploring strategic options” for its credit card portfolio and it will discontinue its investment and retirement products. It will also end a partnership with Buy Now, Pay Later (BNPL) company Sezzle.

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