Item 2.05 Costs associated with eviction or disposal activities.
upon January 31, 2023in response to a challenging macro environment in which many lenders and credit investors have slashed or suspended loan originations, Upstart Holdings Co., Ltd. (“upstart”) has implemented a plan to reorganize (“January 2023 plan”). January 2023 The plan is designed to reduce operating costs, streamline operations, and return Upstart to profitability.of January 2023 The plan involves reducing Upstart’s current workforce by approximately 20%, or approximately 365 people.
Upstart estimates the approximate cost. $15 million Total charges associated with January 2023 plan. Upstart expects these claims to be in the form of future cash outlays related to severance payments, employee benefits and taxes.In addition to these fees, Upstart charges approximately $3 million Temporary non-cash savings related to cancellation of previously expensed stock-based awards related to forfeited stock awards. Upstart spends most of its expenses and cash outlays on January 2023 Planning occurs or completes at the end of the quarter
March 31, 2023.
When January 2023 The plan is fully implemented and Upstart is about $57 million Operating expenses over the next 12 months, primarily related to employee cash compensation and benefits. Upstart is also about $42 million
It concerns stock compensation through 2025.
Upstart also plans to pause the development of small business lending products until macroeconomic conditions improve.
Upstart may incur other fees or cash outlays not currently envisioned as a result of or in connection therewith. January 2023 plan. Our company January 2023 Plan from adjusted EBITDA and adjusted net income calculations.
Forward-Looking Statements
This current report on Form 8-K contains forward-looking statements. January 2023 Plans, including intent and associated estimated fees, costs, cash payments, timing of such fees, anticipated savings, and suspension of Upstart’s small business loan products. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements may include “anticipate”, “estimate”, “expect”, “plan”, “plan”, “intend”, “target”, “aim”, “believe”, ” May include words such as “may” and “will”. , “should,” “will,” “look forward to,” “could,” “could have,” “likely,” and discussions of the timing or nature of future operating or financial performance Other words and terms of similar meaning related to or other events. Forward-looking statements represent our current expectations and projections regarding our financial condition. Objectives; Product Development; Growth Opportunities; Assumptions; Risks; Neither the Company nor any other party assumes responsibility for the accuracy or completeness of these forward-looking statements. The forward-looking statements contained in this Form 8-K relate only to events as of the date hereof. Upstart undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For more information about factors that may affect our operating results and risks and uncertainties, please visit Securities and Exchange CommissionA copy of is available at www.upstart.com or of the SEC Website at www.sec.gov.
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