Upstart

Upstart laid off 365 employees representing approximately 20% of its workforce on 2023-01-31.

In November 2022, fintech lending giant Upstart laid off approximately 140 employees, representing 7% of its then 2,000-strong workforce. The company, which operates a cloud-based AI lending platform, attributed the staff reduction to ongoing economic challenges and a significant decline in loan demand, driven largely by the Federal Reserve's interest rate hikes to combat inflation. This downturn led to a sharp drop in Upstart's loan volumes and a dramatic 84% fall in its share price over the year. The layoffs, focused on roles processing loan applications, were described as a difficult but necessary step for the company's long-term health, with no further cuts anticipated at that time.