LendingClub To Lay Off About 225 Employees

(RTTNews) - LendingClub Corporation (LC) Thursday announced its plans to lay off about 225 employees, in an attempt to reduce cost.

LendingClub plans to reduce workforce by 14%, or 225 employees. The company expects to incur charges of around $5.7 million of which $4.4 million was expensed in the fourth quarter. The company anticipates the workforce reductions will result in annualized run-rate savings in compensation and benefits of about $25 million to $30 million in 2023.

"We remain committed to championing the financial success of our customers while generating long-term profitable growth amid an increasingly challenging economic environment," said Scott Sanborn, LendingClub's CEO. "We have proactively implemented various measures to make this happen, including the very difficult decision to reorganize and reduce our workforce. These measures enable us to more closely align our expense structure to loan volume and revenue, while ensuring effective execution against our strategic priorities and long-term vision."

The company also provided preliminary results for the fourth quarter and full year 2022. The company expects fourth-quarter revenues of $260 million to $263 million and net income of $21 million to $24 million. For the full year 2022, the company now sees revenues of $1,185 million to $1,188 million and net income of $287 million to $290 million.