FILE PHOTO: A Lending Club banner hangs on the facade of the the New York Stock Exchange in New York, New York, United States December 11, 2014. REUTERS/Brendan McDermid/File Photo

(Reuters) – Online lender LendingClub Corp (LC.N) said on Tuesday it would lay off 460 employees, including President Steven Allocca, as part of a restructuring plan to slash costs amid the economic fallout of the COVID-19 pandemic.

The layoffs represent roughly a third of the company’s total workforce of 1,538 people as of Dec. 31.

“COVID-19 is having an unprecedented effect on consumers, small businesses and the broader economy, including the credit markets, and has resulted in a current reduction in platform investor demand for personal loans,” the company said in a regulatory filing. (bit.ly/2VHB7fq)

LendingClub said it expects to incur termination costs of about $10 million in the rest of the year.

The company also announced temporary salary reductions for its top executives. Chief Executive Officer Scott Sanborn will take a 30% cut to his base salary, while others will take a 25% reduction.

Reporting by Bharath Manjesh in Bengaluru; Editing by Maju Samuel

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