​LendingClub cuts 14% staff, announces preliminary Q3 results

LendingClub Corporation (NYSE:) shares gained more than 6% after-hours following the company’s announced cost-cutting plan and preliminary Q3/23 results.

“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. To that end, we have made the very difficult decision to streamline our workforce. Longer term, we expect marketplace revenue to rebound as we capture the historically large credit card debt refinancing opportunity,” said CEO Scott Sanborn.

The company is trimming its workforce by about 14%, or 172 employees. This move is forecasted to bring annual savings in compensation and benefits ranging between $30 to $35 million, compared to Q2/23.

For Q3/23, LendingClub generated loans worth roughly $1.5 billion. Based on the management’s current projection, the anticipated revenue and net income for the quarter are $198-$200M (vs. consensus estimate of $199.42 million) and $4-$5M, respectively.

The company’s Q3 earnings report will be released on Wednesday, October 25, 2023, after the market close.