LendingClub to Slash San Francisco Office, Move 350 Jobs to Utah
(Bloomberg) -- LendingClub Corp., the online-loan marketplace, plans to wind down customer support operations in its home city of San Francisco and shift staff to Utah as it seeks to trim costs.
In an internal memo to staff reviewed by Bloomberg, Chief Executive Officer Scott Sanborn said LendingClub aims to have its teams completely out of San Francisco by December.
“This is one of those messages that, while I know it’s the right thing for the company, is tough to deliver,” the memo reads. It means that “virtually all operations positions, including those supporting auto, will eventually no longer exist in San Francisco.”
About 350 jobs will shift to Lehi, Utah, where LendingClub recently opened a new office.
Headroom to Grow
Sanborn said in the memo that rents in San Francisco have increased 140 percent since 2010 and are now “some of the highest in the country.”
“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.”
There weren’t any job eliminations as part of the announcement. LendingClub, which has about 1,700 employees, plans to provide impacted teams with official notices, including separation dates, on or around July 1.
LendingClub’s New York-traded stock closed down 2.2 percent Tuesday. While the shares have gained 21 percent this year, they’re still almost 80 percent below their listing price of $15 in late 2014.
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