As part of its "ongoing commitment to profitability," the firm aims to establish "a simpler, leaner and better positioned UK focused operation" through the implementation of its business simplification strategy, which was initially revealed in March. This includes the cutbacks.

Funding Circle anticipates that the approach will result in annualized run rate cost reductions of about £15 million by 2025, as indicated in the LSE filing. Funding Circle expects that its most recent move will result in non-recurring expenses of about £5 million, which it claims "will be recognised in 2024" because part of this approach is already in motion.

Oliver White, who served as Funding Circle's CFO for four years, has also declared his decision to leave the company in addition to the employment layoffs. He will step down from the board "at the end of 2024," and Tony Nicol, the company's current head of finance and investor relations and a former IG Group financial controller, will take his place.

Funding Circle CEO Lisa Jacobs comments on the most recent development, stating that while the company is "happy to report continued momentum on the path we set out in March to become a simpler, profitable business," the decision to reduce employment was "not a decision we took lightly."

Funding Circle continues, saying that the company is "on track to meet full-year guidance" and that its performance thus far this year has been "in line with expectations."

The LSE filing makes reference to Jacobs' remarks on the company's March earnings call regarding the possible sale of its US business, saying that "Discussions regarding a potential transaction are progressing well and an update on the outcome will be provided in due course."

"We don't think this is the best course of action for the group, even though the US business offers attractive long-term growth, and it also requires a significant amount of cash and capital to grow the small business administration (SBA) proposition," Jacobs had previously told investors.