AI loan platform Upstart fires 7% of its staff
- ByStartupStory | November 2, 2022
Upstart, an AI lending platform, has let go 140 employees, or 7% of its whole workforce, as a result of sharp increases in interest rates in the US, which have decreased the demand for loans. The lending platform, which employs roughly 2,000 people, informed the impacted workers on Tuesday that they will be laid off.
In its most recent filing with the US Securities and Exchange Commission (SEC), it stated that the decision was made as a result of the “decrease in the number of loans” on its platform and continuous economic difficulties. The platform reported a 72% yearly rise in loan volumes in its most recent quarterly statistics. This year, the share price of the corporation fell by 84%.
Upstart once had a $32 billion market cap. It is currently under $2 billion. Many technological firms have been impacted by the global economic downturn, including those in India, as a result of the severe capital shortage for startups.
“Given the challenging economy, we are making this difficult decision for the long-term health of the company. We do not expect any further layoffs, and continue to hire for roles that are strategic to our business,” an Upstart spokesperson stated.
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