LendingClub Appoints New CEO, Cuts 179 Jobs

LendingClub (LC) - Get Report shares jumped on Tuesday after the company appointed Scott Sanborn as CEO and said it would cut nearly 200 jobs. Sanborn replaces LendingClub's founder and CEO Renaud Laplanche who resigned last month after the company acknowledged it had improperly changed the dates on a series of loans as part of a $22 million buyback last month of 'near-prime' loans from Jefferies, which said the credit did not conform to the criteria of the request. The company expects loan originations in the second quarter to be about one-third lower than in the first quarter, according to a statement. In light of lower loan volumes in the second quarter, the company will be eliminating 179 positions. LendingClub expects to resume revenue and profit growth in the first half of 2017.

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