LendingClub Cuts About 30% of its Workforce Due to Cornavirus

The Covid-19 has put a damper on loan demand, prompting LendingClub to slash about 30% of its workforce recently.

The company announced this week that it would be laying off 460 people, accounting for roughly 30% of its current workforce.

Accoeding to LendingClub CEO, Scott Sanborn, the coronavirus outbreak is having an “unprecedented effect” on consumers and small businesses. This has led to a reduction in demand for personal loans.

“With these actions, we believe we are well positioned to achieve our long-term strategic goals and better serve our members, who will need us more than ever, once the economy stabilizes,” said Sanborn.

LendingClub also revealed that it was reducing executives’ salaries by 25%. Sanborn will take a 30% pay cut himself.
America’s largest online lending marketplace connecting borrowers and investors is expected to report earnings for the first quarter 2020 on Tuesday, May 5, 2020, after market hours.

Shares of the Lending Club have fallen more than 40% this year so far.

Disclaimer: We have no position in LendingClub Corp. (NYSE: LC) and have not been compensated for this article.