San Francisco-based LendingClub, a peer-to-peer online lender connecting borrowers and investors, is continuing its restructuring activities. First, by converting the company’s underwriting of small business loans to a lead-generation and referral fee model; and second by capturing cost savings my transferring its online customer support operations from its San Francisco office to Lehi, Utah. Approximately 350 employees will be laid off during the transition period.
According to a company spokesperson, “This is one of those messages that, while I know it’s the right thing for the company, is tough to deliver. It means that ‘virtually all operations positions, including those supporting auto, will eventually no longer exist in San Francisco. Growing exclusively in San Francisco simply doesn’t make financial sense. Instead, we now have plenty of headroom to grow affordably in Lehi and access a new talent base in Utah.”
The company has just completed a reverse stock-split to reduce the number of shares outstanding and to increase its attractiveness to institutional investors.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?