Upstart Just Fired 140 Hourly Employees. It Needs the Fed's Help More Than Ever.
Artificial intelligence lending company Upstart (NASDAQ: UPST) announced in a regulatory filing Tuesday that it plans to eliminate 140 hourly employees who helped process loan applications. The company attributed the move to "the challenging economy and reduction in the volume of loans on our platform."
The move all but confirms my suspicions that Upstart might be facing a tough third quarter due to continued pressure on originations from the high-interest-rate environment.
With Upstart's stock down 85% already this year and the company facing another quarter of poor performance, it's clear that Upstart needs the Federal Reserve to slow the pace of interest rate hikes more than ever. Here's why.
Source Fool.com
