Upstart Is Reorganizing Again. What It Means for the Company's Future.
After a very difficult year in 2022 for the artificial intelligence-assisted lender Upstart (NASDAQ: UPST), more pain is coming.
The company announced in a regulatory filing this morning that in its latest reorganization efforts to get back to profitability, it will lay off 365 employees, or roughly 20% of its workforce. (Upstart laid off 140 hourly employees in November.) It will also put the build-out of its small-business lending product on pause until conditions improve.
The Federal Reserve's intense interest-rate hikes have really knocked the wind out of the company's sails after a massive year in 2021 that saw Upstart reach close to $400 per share. With the stock currently below $19, what does this latest reorganization mean for Upstart's future?
Source Fool.com
