The cloud-based AI lending platform notified its affected employees about the layoff on Tuesday. Upstart had about 2,000 employees, according to the company, which confirmed the layoffs.

“Given the challenging economy, we are making this difficult decision for the long-term health of the company. We do not expect any further layoffs, and continue to hire for roles that are strategic to our business,” Upstart spokesperson Mike Nelson said in a statement.

Upstart is facing difficulties owing to weakening demand for loans in the U.S. due to significant hikes in interest rates by the U.S. Federal Reserve to cope with the global rise in inflation. The company’s share price dropped by 84% this year. Upstart was trading at $22.88 in afternoon trading on Tuesday.

Upstart lays off 7% staff amid weakening demand for loans by Jagmeet Singh originally published on TechCrunch