19 June 2018
Visit www.avoka.com

Lending Club names new CEO; axes 179 jobs

28 June 2016  |  7122 views  |  0 chess

Troubled marketplace lender Lending Club has appointed a new CEO and announced plans to axe 179 jobs - representing 12% of its workforce - as it bids to revive its fortunes following a turbulent two months.

The new man at the helm is Scott Sanborn, a six-year veteran of the company who assumed the CEO role on an interim basis in the wake of the resignation of previous incumbent and founder Renaud Laplanche. Laplanche's departure followed an internal review which found that $22 million in near-prime loans were sold to an institutional investor that did not want them, prompting a Justice Department probe into the running of the company's loans book.

The company says it expects loan originations in the second quarter of 2016 to be roughly one third lower than in the first quarter of 2016. it has also earmarked $15-$20 million of additional expenses related to the review and restructuring and plans write-down of between $20-$40 million owing to slower growth expectations for patient financing offshoot Springstone.

Ina statement announcing the job cuts, the company says: "In light of lower loan volumes in the second quarter and recognising that fully restoring investor confidence may take time, the company has decided to reduce 179 positions in the organisation."

Lending Club shares edged up slightly to $4.39 before the bell, still some way off a previous year-high watermark of $15.14.
KeywordsPEOPLE

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Laplanche talks to investors about Lending Club takeover - Reuters

Laplanche talks to investors about Lending Club takeover - Reuters

08 June 2016  |  4974 views  |  1 comments | 4 tweets | 1 linkedin
NYDFS subpoenas Lending Club over interest rates and fees - WSJ

NYDFS subpoenas Lending Club over interest rates and fees - WSJ

19 May 2016  |  5461 views  |  0 comments | 5 tweets | 3 linkedin
Lending Club faces Justice Department probe

Lending Club faces Justice Department probe

17 May 2016  |  4962 views  |  0 comments | 3 tweets | 4 linkedin
US Treasury calls for online lending oversight

US Treasury calls for online lending oversight

11 May 2016  |  5278 views  |  0 comments | 4 tweets | 4 linkedin
Lending Club CEO resigns after review into loan sales

Lending Club CEO resigns after review into loan sales

09 May 2016  |  5632 views  |  0 comments | 13 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit equensworldline.comVisit www.abe-eba.eu

Who is commenting?

A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: Monzo launches bill tr...
A Finextra member Finextra Member Commented on: NatWest taps Open Bank...
A Finextra member Finextra Member Commented on: HSBC promises $17bn in...

Top topics

Most viewed Most shared
10,000 jobs could be lost to robots says Citi10,000 jobs could be lost to robots says C...
48750 views comments | 44 tweets | 35 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
10513 views comments | 9 tweets | 32 linkedin
UK launches £2.5bn startup initiativeUK launches £2.5bn startup initiative
9432 views comments | 30 tweets | 26 linkedin
HSBC promises $17bn investment in technologyHSBC promises $17bn investment in technolo...
8325 views comments | 8 tweets | 21 linkedin
Live: EBAday2018, day oneLive: EBAday2018, day one
8153 views comments | 6 tweets | 5 linkedin

Featured job

(GBP Equivalent) Six-Figure Base + OTE + Benefits
New York City, NY - USA

Find your next job