Small business lender Funding Circle plans to cut about 120 jobs as it cuts costs and raises its interest rate. It also announced the resignation of its CFO.
The London-listed fintech said in an update to the stock exchange that it had introduced cost-efficiency measures to create a “simpler, leaner and better-positioned UK operation”.
The number was expected to fall by about 14 percent from the end of last year, excluding roles in the United States. As of December 31, 2023, Funding Circle employed 1,101 people, including contractors.
Financing Circle is targeting annual savings of around £15m by 2025 and has said it will take on around £5m this year to achieve those savings.
“We are pleased to announce continued momentum on the path we started in March to become a simpler and more profitable business,” said CEO Lisa Jacobs.
“Reduction of roles is not a decision we have taken lightly and I would like to thank the entire departing team for their hard work and dedication.”.
The news comes as Financing Circle looks to focus on its UK business. In March, the group announced that it was considering selling its loss-making US division, for which it had received an offer.
Funding Circle’s shares have fallen 80 percent since listing in London in September 2018. The group’s loss widened to £33.2m in 2023 after a pre-tax loss of £12.9m in the US and after investments. Flexipay your loan now-pay later offer.
The company also announced Wednesday that CFO Oliver White, who joined Funding Circle in June 2020, will leave the board later this year.
Previously CFO of Vanquis Bank, White will be succeeded by CFO Tony Nicol, who joined Funding Circle from IG Group in 2018.
Financial Circle added that its year-to-date performance met expectations and that it continued to meet full-year guidance, including an 8-12% pre-tax profit margin and 10% growth in UK loan income last year.
