LendingClub announced a cost reduction and reorganization plan to align its operations to reduced marketplace revenue following the Federal Reserve’s historic pace of interest rate increases. LendingClub is reducing its workforce by 14%, or 225 employees, and expects to incur related non-recurring, pre-tax charges of approximately $5.7M of which $4.4M was expensed in Q4. The company anticipates the workforce reductions will result in annualized run-rate savings in compensation and benefits of approximately $25M-$30M in 2023.
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