Prosper MarketplaceInc.'s restructuring will result in the closure of its Salt Lake Cityoffice and layoffs elsewhere, the San Francisco-based marketplace lender in a regulatory filing.
Nearly 100 employees will be laid off or relocated from the SaltLake City location, while 73 employees in San Francisco and Phoenix will be laidoff. The company expects the layoffs and relocations to be mostly completed by thethird quarter.
Prosper estimates it will incur pretax charges of about $5.9million due to employee severance and benefits. It also anticipates lease impairmentand other contract-related charges. Those costs will be recognized during the secondand third quarters of fiscal 2016.
Media reports had indicated that layoffs at Prosper were imminentand that CEO Aaron Vermut would forgo his salary in 2016 amid weakening demand forloans from investors.