Upstart notified the SEC today that they are laying off 20% of their workforce (~365 people)in a bid to return to profitability. They are also suspending their small business loan initiative until macro conditions improve.

https://app.quotemedia.com/data/downloadFiling?typ...

They expect the cuts to cost ~$15 million this quarter and then save ~$57 million annually. They say: "Upstart also expects to realize additional non-cash savings of approximately $42 million related to stock-based compensation through 2025."

3 years of stock-based compensation for 365 employees at $42 million works out to ~$38,000 per employee. I guess that's not too much, but I don't love the dilution that comes along with their stock-based compensation of employees. I know it's common among tech firms, don't love it though.

It makes sense for them to batten down the hatches and try to stop bleeding money.

There was more good news on the inflation front today, so hopefully the Fed will go another 1/4 point tomorrow and then decide that's enough.