The Lending Club logo can be seen at the headquarters in downtown San Francisco.
picture alliance, Contributor / picture alliance via Getty ImagesLendingClub will lay off 225 employees or 14% of its workforce, the company said Thursday.
The San Francisco financial services company cited rising interest rates for the restructuring and expects $5.7 million in charges. Payroll and benefits expenses will drop by $25 million to $30 million per year after the job cuts.
“We remain committed to championing the financial success of our customers while generating long-term profitable growth amid an increasingly challenging economic environment,” said CEO Scott Sanborn in a statement. “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.”
Valerie Kay, the company’s chief capital officer, will leave the company on Feb. 25 and her role will be eliminated.
Financial technology companies including Plaid and Chime have also conducted layoffs in recent months. Banking giant Goldman Sachs reportedly began layoffs this week that may total 3,200 people, and Wells Fargo conducted layoffs last year.
Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com Twitter: @rolandlisf
