LendingClub Corp. said it will dismiss 172 employees in an effort to cut costs and that it expects to report a decline in third-quarter profit.
The job cuts amount to about 14% of the workforce, San Francisco-based LendingClub said Thursday in a statement. The company, which is set to announce its final quarterly results on Oct. 25, said it expects a profit of $4 million to $5 million, down from $43.2 million a year earlier.
Shares of LendingClub rose 2.9% to $5.62 in extended trading at 4:34 p.m. in New York. The stock tumbled 38% this year through the close of regular trading.
“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,” Chief Executive Officer Scott Sanborn said in the statement. “Longer term, we expect marketplace revenue to rebound as we capture the historically large credit-card debt refinancing opportunity.“
LendingClub said it expects to report net revenue of $198 million to $200 million for the three months ended Sept. 30.
The job cuts “will result in annualized run-rate compensation and benefits savings of approximately $30 to $35 million compared to the second quarter,” according to the statement.
— With assistance by Breanna Bradham