OnDeck (NYSE:ONDK), an online lender serving SMEs, is said to be laying off employees in the midst of a challenging market due largely to the COVID-19 crisis.
There have been multiple reports regarding OnDeck’s struggle to keep the Fintech afloat. Last June, OnDeck received a listing notice from the New York Stock Exchange as the share price fell below the $1 listing requirements. As of Friday, shares in OnDeck were hovering around $0.75 a share – far below its 52 week high of $4.70 a share and its all-time high of over $23 a share.
In May, there were rumors circulating that OnDeck was being shopped out to potential acquirers.
Around that time during an earnings call, OnDeck CEO Noah Breslow stated:
“… this challenging and dynamic operating environment clearly has a very direct impact on the small business lending landscape in which we operate, creating near term headwinds, as well as long-term opportunities including potential consolidation within our industry. We continue to work with our board to explore all options to maximize shareholder value.”
In June it was reported that OnDeck was planning to recommence loan originations following a period during the Coronavirus challenge the online lender had hit the pause button on lending.
The report of company-wide layoffs was first revealed by deBanked who attempted to contact OnDeck regarding the rumors but found their contact was no longer with the firm. Crowdfund Insider attempted to contact a senior executive at OnDeck as well only to encounter a similar message that the employee was no longer working for OnDeck.
