(Reuters) – LendingClub is cutting 172 jobs, or 14% of its workforce, the financial services company said on Thursday, as it looks to reduce costs amid continued macroeconomic uncertainty.
The Federal Reserve’s aggressive rate hikes to rope in sticky inflation has increased the potential for an economic slowdown, forcing several Wall Street titans to axe jobs.
Shares of San Francisco, California-based LendingClub were up more than 3% in trading after the bell.
The company expects the job cuts to result in annual cost savings of about $30 million to $35 million.
“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,” Chief Executive Officer Scott Sanborn said in a statement.
The company had laid off 225 employees earlier this year and said its third-quarter expectations are inclusive of the majority of severance charges, which were recorded in the quarter.
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LendingClub expects third-quarter revenue to be between $198 million and $200 million and net income in the range of $4 million to $5 million.
Analysts on average expect revenue of $199.4 million and profit of $2.75 million, according to LSEG data.
The company is scheduled to report its third-quarter results on Oct. 25 after markets close.
(Reporting by Pritam Biswas and Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel)