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Lending Club cuts 460 jobs citing impact of COVID-19

LendingClub Corp., a San Francisco-based online loan marketplace, will lay off 460 employees, about one-third of its workforce, due to COVID-19 related impact on credit markets and investor appetite for personal loans. 

The layoffs include LendingClub President Steven Allocca whose last day will be May 12, according to a SEC filing. 

The company said it will incur pre-tax charges of about $10 million, which includes a $1 million employee relief plan to help impacted employees and the remaining representing future cash expenditures for severance and other related benefit costs. 

The company is also slashing executive salaries by 25%, with CEO Scott Sandborn taking a 30% cut. 

The workforce reduction comes just two months after LendingClub announced it was buying RadiusBank for $185 million, the first time a fintech has acquired a bank.