In a very surprising move, online lending marketplace LendingClub recently announced the termination of its President Steve Allocca. Though a lot of job cuts are happening throughout the world, the firings so far were only limited to medium or junior level employees.
The recent decision to terminate the serving President by the company is a part of an ongoing restructuring process. The company has additionally laid off about 30% of its workforce or around 460 employees. The decision of restructuring was taken because of the impact of coronavirus on the business.
In a Securities Exchange Commission filing, the company said, “On April 20, 2020, as part of the Plan, the Board determined to terminate the position held by Steve Allocca, and accordingly his final day of employment with the Company will be May 12, 2020. In connection with his departure and subject to the execution of a release of claims against the Company, Mr. Allocca is entitled to severance.”
Allocca had joined the company in May 2017 after moving from PayPal. He was the VP and General Manager for PayPal’s Global Credit.
A Kellogg School of Management alumni, Allocca has more than three decades of experience of working in different positions.
The coronavirus pandemic has impacted several jobs globally with nearly 10 million people filing for unemployment benefits in America alone. The pandemic has forced businesses to close operations and employees have been sent on furloughs for indefinite periods. The International Labour Organization has predicted that globally around 2.5 million jobs would be lost due to the this pandemic.
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