COTTONWOOD HEIGHTS — Less than two years after receiving a $1.2 million tax incentive package from the Utah Governor's Office of Economic Development, San Francisco-based online lender Social Finance Inc. (SoFi) announced it will lay off 5 percent, or about 65, of its 1,300 employees.
The reductions will target office staff in Cottonwood Heights and in Healdsburg, California.
In a statement to the Deseret News, SoFi spokesman Jim Prosser declined to detail the number of Utah employees impacted, but said the total is minimal and the reductions are not a reflection of poor business performance.
"We aren’t offering a figure, but it’s a small percentage of the overall employee base," Prosser said. "Coming off a record-breaking 2017, we’ve made some changes to staffing to ensure we have the right people in the right roles and locations to power our growth."
While the company's Utah office focuses on home mortgage loans, SoFi is probably best known for innovating financial products aimed at the personal loan and student loan markets. Just last week, the company announced the hiring of former Twitter executive Anthony Noto to take over the helm as SoFi's new CEO, effective March 1.
Prosser also noted in spite of the layoffs, the company is still in hiring mode, including for positions at its Utah operation.Comment on this story
"We’re currently hiring for over 175 openings across SoFi, and investing in both existing and new products for our members," Prosser said.
In March 2016, the company was granted a post-performance tax incentive package by the Governor's Office of Economic Development, based on SoFi's plans to hire up to 400 for its new Utah office by 2021. The economic development office requires recipients of post-performance incentives to reach promised hiring goals before tax credits are issued in the form of rebates.