The online student lender CommonBond laid off 22 employees on Tuesday, or roughly 18% of its workforce.
CEO David Klein said the New York company is trying to plan for the year ahead.
“It's no secret that the market is more volatile now than it was before,” he said. “We think it's important to be responsive, and grow in the right way. We see a lot more opportunity in the market, and we want to capture it wisely.”
While the company laid off almost two dozen people, it's also hiring. The Careers page at its website lists 12 positions in areas including finance, software development, marketing, compliance and product management.
“As it relates to our team's structure, we are focusing investment into the areas of our business that promise to generate high returns in the years ahead,” Klein said. “That means reallocating some roles, hiring for new ones, and sunsetting others.”
The company plans to build upon its recent acquisition of NextGenVest, for example, Klein said.
A CommonBond spokeswoman described its 2018 performance as strong. It made more than $1 billion worth of loans, with low customer acquisition costs and low defaults (under 10 basis points), she said.
“In a rising interest rate environment, that was seen as a big win, on an absolute basis and on a relative basis when compared to the industry,” she said.
