LendingClub has made the decision to lay off about 30% of its workforce as it sees the number of personal loans drop because of the impact of the coronavirus pandemic.

The company said in its Securities and Exchange Commission (SEC) filing that about 460 employees would be let go with executive salaries cut by 25%. LendingClub CEO Scott Sanborn will also take a 30% pay cut, and the company’s board of directors will reduce their cash retainers by 30%.

In its SEC filing, LendingClub said, COVID-19 was having an “unprecedented effect on consumers, small businesses and the broader economy, including the credit markets, and has resulted in a current reduction in platform investor demand for personal loans.”

The decision to layoff workers and cut salaries by restructuring will “better position the company to navigate and serve members through today’s economic environment and over the longer-term as the need for the company’s services grows,” the filing said.

LendingClub will take an approximately $10 million pre-tax restructuring charge for the remainder of the year, with $1 million dedicated to an employee relief fund to assist workers during the coronavirus pandemic. The remaining balance will be used for the payment of severance and related benefits expenses.

LendingClub was not approved as a lender for the federal Paycheck Protection Program, CNBC reported.

LendingClub
LendingClub laid off 30% of its workforce during the coronavirus pandemic. Lending Club banners hang on the facade of the New York Stock Exchange for it's IPO on December 11, 2014 in New York. Lending Club started trading on the NYSE at a high $24.75 USD per share. Getty Images/DON EMMERT/AFP
RELATED STORIES
Coronavirus