At its annual stockholder meeting, Lending Club blamed the cuts on a predicted decline in loan volumes in the second quarter.

Lending Club also announced that current President Scott Sanborn would now replace former CEO Renaud Laplanche.

Laplanche resigned in May after an internal review revealed that approximately £15m in near-prime loans was lent to a single investor.

Hans Morris, Chairman of the Board of Directors at Lending Club, said: "Scott and the management team have demonstrated they can lead Lending Club through this turbulent time.

“The board has decided this is the right time to hand full responsibility over to Scott in his role as the CEO.

“With today's announcements and Scott at the helm, Lending Club is now in a position to move forward."

Lending Club said it expects Q2 loan originations to be roughly one-third lower than in the first quarter of 2016.

The firm expects to report approximately £6.7m worth of investor incentives and has also initiated a review of controls, governance and compliance.

Scott, CEO and President of Lending Club, added: “We have demonstrated the power of the Lending Club marketplace model to generate attractive, risk-adjusted returns to investors.

"We are working closely with investors to rebuild confidence and are encouraged to see them returning to the platform."

Scott has worked at Lending Club for six years, having previously served as chief marketing officer and chief operations officer.