Layoffs announced at LendingClub, affecting a total of 172 employees.

LendingClub Announces Job Cuts Amidst Macroeconomic Headwinds

LendingClub, the leading online lending platform, has announced that it will be cutting 172 jobs, representing 14% of its workforce. The job cuts are part of measures implemented by the company to navigate the challenging macroeconomic environment.

The company's CEO, Scott Sanborn, stated that they are proactively implementing various measures to address the pressure in the marketplace. Sanborn also expressed a longer-term outlook, stating that the company expects marketplace revenue to rebound as consumers take steps to refinance their credit-card debt.

The job cuts are due to reduced marketplace revenue in the wake of the Federal Reserve's interest rate increases. LendingClub expects to save approximately $30 million to $35 million in compensation and benefits annually from the job cuts.

Industries affected by the job cuts include Retail and Fintech. Notably, LendingClub's competitors such as Citi, Truist, Barclays, and Goldman Sachs have also indicated their intentions to reduce headcount last month. However, no specific details about the number of employees affected by the staff reductions at these companies were provided.

As of 2025, LendingClub has approximately 1,002 employees. In comparison, Pittsburgh-based PNC has initiated a 4% staff reduction, which could potentially affect more than 2,400 employees.

LendingClub has already made one round of job cuts this year, cutting 225 employees in January. Other financial institutions have also been affected, with Ally Financial starting job cuts last week, potentially affecting over 500 employees. Wells Fargo announced the closure of a corporate office in Columbia, South Carolina, affecting 525 workers.

It is important to note that LendingClub has a bank charter from its 2020 acquisition of Radius Bank. The company is set to report its third-quarter earnings on October 25. According to Sanborn, the company's revenue for the period is expected to be between $198 million and $200 million, with net income between $4 million to $5 million.

These developments highlight the challenges faced by the financial sector amidst rising interest rates and economic uncertainty. LendingClub, like many other institutions, is taking steps to adapt and navigate these headwinds.