Upstart (NASDAQ:UPST) layoffs will see the company cutting a major number of jobs as it looks to reduce costs.
With today’s news comes Upstart layoffs covering 20% of the fintech company’s employees. That means 365 of its workers are losing their jobs. The company expects to suffer a $15 million charge connected to the job cuts.
Upstart notes that the layoffs are part of its January 2023 Plan to reduce costs, streamline operations, as well as return the company to profitability. It points out this plan is in response to a “challenging macro environment where many lenders and credit investors have significantly reduced or paused loan originations.”
Upstart is expecting to save $57 million in operating expenses once the layoffs are complete. It’s also suspending the development of its small business loan product until macroeconomic conditions improve.
Upstart Joins Layoffs Trend
Upstart is nowhere close to the first company announcing layoffs in recent months. Several companies have taken to reducing their headcounts as they deal with inflation and recession concerns.
Adding to that, tech companies have been hit particularly hard by the economy. This has many of them laying off workers after expanding their number of employees to meet demand during the Covid-19 pandemic.
UPST stock is down slightly as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.