Funding Circle to Cut Jobs and Boost Share Price amid Cost Efficiency Measures

Funding Circle, a small business lender, is making significant changes in an effort to boost its struggling share price. The company has announced plans to cut around 120 jobs and streamline its operations to reduce costs.

The London-listed fintech company revealed that it aims to create a “simpler, leaner, and better positioned UK focused operation” through cost efficiency measures. This includes a reduction in headcount by approximately 14% compared to the end of last year, excluding roles in the US. Funding Circle currently employs 1,101 people, including contractors.

In addition to job cuts, Funding Circle is targeting roughly £15m in annualized cost savings in 2025. The company expects to incur around £5m in costs this year to achieve these savings.

Chief Executive Lisa Jacobs expressed optimism about the company’s direction, stating, “We are pleased to report continued momentum on the path we set out in March to become a simpler, profitable business.” She also acknowledged the difficulty of the decision to reduce roles and thanked the departing team for their hard work.

This news comes as Funding Circle looks to refocus on its UK business and potentially sell its loss-making US division. The company’s shares have declined by 80% since its listing in London in September 2018. Despite widening losses in 2023, Funding Circle remains on track to meet its full-year guidance, including a pretax profit margin of eight to 12% and 10% income growth in UK loans compared to the previous year.

Furthermore, Funding Circle announced the departure of Chief Financial Officer Oliver White, who will be leaving the board at the end of the year. He will be succeeded by Tony Nicol, the current director of finance and investor relations.

Overall, Funding Circle’s strategic changes and cost-saving measures aim to improve its financial performance and share price in the future.