By Sabela Ojea
LendingClub said it is reducing its workforce by 14% amid views for a major drop in revenue in the upcoming quarter, citing challenging macroenvironment conditions as a result of higher interest rates.
The financial services company on Thursday said its cost-cutting plan will affect 172 employees and will drive annual savings of about $30 million to $35 million due to lower compensation and benefits costs.
“Longer term, we expect marketplace revenue to rebound as we capture the historically large credit card debt refinancing opportunity,” Chief Executive Scott Sanborn said.
The firm’s restructuring measures come as it expects to post revenue of $198 million to $200 million in the third quarter, down from reported revenue of $304.9 million for the same period a year earlier.
It also predicts third-quarter net income of $4 million to $5 million, coming below last year’s profit of $43.2 million.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix
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