By Online lending platform LendingClub Corp. on Thursday said it would lay off 225 employees, or 14% of its staff, as higher interest rates discourage borrowing and cut into revenue.
The company also forecast fourth-quarter sales of $260 million to $263 million, compared with FactSet forecasts for $263 million. For the full year, management said it expected sales between $1.185 billion and $1.188 billion. FactSet estimates called for $1.19 billion.
Shares of LendingClub
LC,
+2.16%
rallied 3.4% in after-hours trading.
The decision follows “reduced marketplace revenue following the Federal Reserve’s historic pace of interest rate increases,” company executives said in a statement.
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