LendingClub announces cost reduction plan, reduces workforce by 14%

LendingClub announced a cost reduction plan to ensure its ability to navigate through the challenging macroenvironment. “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,” said Scott Sanborn, LendingClub’s Chief Executive Officer. “To that end, we have made the very difficult decision to streamline our workforce. Longer term, we expect marketplace revenue to rebound as we capture the historically large credit card debt refinancing opportunity.” LendingClub is reducing its workforce by approximately 14%, or 172 employees. The company anticipates that the actions will result in annualized run-rate compensation and benefits savings of approximately $30M-$35M compared to the second quarter of 2023.