Troubled peer-to-peer (P2P) lender LendingClub has decided to shed 179 jobs following an accounting scandal that led to the departure of its CEO Renauld Laplanche.
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In May 2016, Laplanche departed from the company after an internal review revealed that loans worth $22m were sold to an institutional investor that did not want them.
The San Francisco-based online lender said that the layoffs represent 12% of the company’s workforce, and have been made "in light of lower loan volumes in the second quarter and recognizing that fully restoring investor confidence may take time."
LendingClub has now appointed Scott Sanborn as its new CEO and president, and Hans Morris as independent chairman of the board.
The company further said that it expects loan originations in the second quarter of 2016 to be about one-third lower compared to the previous quarter.
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By GlobalDataIn addition, it has allotted $15m-$20m of additional expenses related to employee retention, employee severance, advisory relationships, board review, remediation and due diligence activities and restructuring, and a goodwill write-down of between $20-$40m.
