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LendingClub cuts 225 jobs

P2P lending pioneer LendingClub is cutting its workforce by 14% - 225 employees - as it faces up to reduced demand for its loans.

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LendingClub cuts 225 jobs

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The firm says it is streamlining its operations to align with "reduced marketplace revenue following the Federal Reserve's historic pace of interest rate increases".

The job cuts are expected to result in annualised run-rate savings of between $15 million and $30 million in 2023.

LendingClub had already cut 30% of its workforce - 460 people - in April 2020, blaming the "unprecedented effect" the Covid-19 pandemic had on loan demand.

The firm says it originated $2.5 billion in loans in the fourth quarter and expects revenue of between $260 million and $263 million, with net income of between $21 million and $24 million.

Scott Sanborn, CEO, LendingClub, says: "These measures enable us to more closely align our expense structure to loan volume and revenue, while ensuring effective execution against our strategic priorities and long-term vision."

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