Peer-to-peer lending firm LendingClub has confirmed it will move 350 customer-support roles from San Francisco to Utah before the end of the year.
Speaking to the San Francisco Business Times LendingClub spokesman Anuj Nayar confirmed: "We plan to wind down customer-support operations in San Francisco and move that division to Lehi, Utah."
The company, which employs more than 1,700 people in San Francisco, said that high rents for space for customer-support positions and lowering costs across the company were among the factors behind the decision to move the jobs to Lehi, Utah, which is located a few miles south of Salt Lake City.
Scott Sanborn, CEO of LendingClub, wrote in a memo to employees: "Growing exclusively in San Francisco simply doesn't make financial sense. Instead, we now have plenty of headroom to grow affordably in Lehi and access a new talent base in Utah.
"This is one of those messages that, while I know it's the right thing for the company, is tough to deliver. Virtually all operations positions, including those supporting auto, will eventually no longer exist in San Francisco."
While the company's headquarters will remain in San Francisco, the company has already begun making arrangements to reduce the space it uses in the city by 41%. According to the Economic Development Corporation of Utah, LendingClub received tax incentives of up to $4.5m from the state of Utah to set up its new $17.85m 130,000-square-foot operation in Lehi. The company has a targeted the creation of up to 860 jobs at its new Utah facility.
In recent years, Charles Schwab has moved thousands of jobs out of San Francisco due to the economics of doing business in the city, with its operations moving into lower-cost markets in Texas and Colorado, while JPMorgan Chase has moved some of its back-office credit card operations out of the Bay Area.