LendingClub Company It said it would lay off 172 employees to cut costs and expected profits to fall in the third quarter.
San Francisco-based LendingClub said in a report Thursday that the layoffs amounted to about 14% of the workforce. statement.The company is scheduled to report final quarter results on October 25 and said it expects profit of $4 million to $5 million, down from the same period last year. $43.2 million a year ago.
LendingClub shares were up 2.9% at $5.62 in extended trading at 4:34 pm in New York. As of the close of general trading, the stock has plunged 38% this year.
“We continue to proactively take a variety of measures to address ongoing macroeconomic headwinds and resulting market pressures, primarily driven by rising interest rates,” Chief Executive Scott Sanborn said in a statement. “In the longer term, Look, we expect market revenues to rebound as we seize the largest credit card debt refinancing opportunity in history.”
LendingClub said it expected net income for the three months ended Sept. 30 to be $198 million to $200 million.
The layoffs “will result in annualized operating salary and benefit savings of approximately $30 million to $35 million” compared to the second quarter, the statement said.
— With assistance from Brianna Bradham
Svlook
