Lending Club, a leading peer-to-peer loan provider, announced today that their 10-week summer internship program has been cancelled for 2016.
The cancellation of their paid program comes in the wake of massive upheaval within the company, as Renaud Laplance, its former CEO, recently resigned. In addition, the public company is under federal investigation.
A spokesperson from Lending Club told CNBC that the decision to cancel the internship program was thought about in depth, and was determined to be the best course of action. By announcing the cancellation now, the San Francisco-based company believes that it allows those who would’ve been interns to find different opportunities for the summer.
Clearly, however, many feel slighted. One would-have-been intern took to Reddit to voice his displeasure, claiming that he had already made travel and living arrangements for the summer. He expressed that he doubted he was alone in having done such.
Trust in Lending Club has largely subsided based on a bad loan arrangement that became public. Its stock price has also plummeted in conjunction with the announcement of the stepping down on Laplance. Shares are down 75 percent since Lending Club’s IPO, and 67 percent just this year.
Some believe that Lending Club’s current downward spiral could lead to the corporation going bankrupt, which cause a host of legal complications. It will be smart to keep an eye out for any further developments.