Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
leaving job
April 22 2020

LendingClub cuts workforce as Covid-19 hits hard

Michael Lloyd Global News, Industry News, News, Top 3 coronavirus, Covid-19, LendingClub, Steven Allocca

LendingClub has made its president Steven Allocca redundant and will cut its workforce as part of a restructuring plan after Covid-19 has hit its loan originations.

The board of the US peer-to-peer lending platform has approved the plan, which includes workforce reductions affecting approximately 460 employees.

Impacted employees will receive support through an employee relief plan.

In an 8K document submitted to the Securities and Exchange Commission, the board blamed the pandemic’s impact on consumers, businesses and the economy, and consequently  the platform’s loans.

The plan repositions its expense base to better reflect its current loan volume and position itself for profitability when the economy stabilises, LendingClub said.

Allocca’s last day with LendingClub will be on 12 May and he is entitled to severance payments.

The platform’s top executives have agreed to temporarily cut their base salary. Named executive officers have agreed a 25 per cent drop and chief executive Scott Sanborn has agreed 30 per cent.

Additionally, the board voluntarily reduced the base cash retainer non-employee directors receive for serving on the board in 2020 by 30 per cent.

Read more: LendingClub hires Uber’s Annie Armstrong as chief risk officer

Read more: LendingClub’s bank acquisition ‘credit positive’

“It’s never easy to lose people who are not just colleagues, but teammates and friends,” said Sanborn.

“These are amazing, innovative, and committed people who have helped to build LendingClub into a great company.

“However, it was necessary to realign our staffing to the current business environment.

“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 stabilises.”

In connection with the workforce reductions under the plan, LendingClub expects to incur total pre-tax restructuring and related charges of approximately $10m (£8.09m) during the remainder of the year ending December 31, 2020.

Of this approximately $1m (£0.81m) represents an employee relief plan to assist impacted employees through this challenging time and the remainder represents future cash expenditures for the payment of severance and related benefits costs.

Read more: LendingClub launches institution-only market, but is it “old news”?

Treasury faces calls to release more transparent CBILS data Finance sector unites to combat scam coronavirus text messages

Related Posts

Bank of England

Industry News, News, Top 3

Bank of England supports fintechs to scale-up

Woman has video conference with her remote team using laptop and camera

Industry News, News, Top 3

Remote working set to continue for finance and tech workers

Businessman is pressing button on touch screen interface and selecting "Pricing".

Industry News, News, Property, Top 3

Blend Network updates product prices

Popular posts:

  • Business Loan Network appoints administrators
  • Starling Bank ready to acquire a lending business
  • Funding Circle chief turns down £190,000 pay rise
  • LCF law firm responds to Treasury compensation scheme
  • PwC brings fintechs together for collaboration
  • Chancellor unveils raft of measures for fintech sector
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by