A payday loan website is closing its doors and cutting its workforce to meet a $2.7-billion debt reduction plan.
The company, called Payday Loans, said it would lay off about 1,400 employees at its headquarters in Calgary and in Waterloo, Ont.
The layoffs were part of a restructuring plan announced last month.
Payday Loans was founded in 2012 by two students from Victoria, B.C., to serve as a resource for low-income people who want to borrow money for small loans.
The company has since grown to have more than 1,800 clients and is one of the largest payday lenders in Canada.
Its employees were among the more than 100 people laid off from its parent company, Equifax.
The layoffs, which are expected to take effect in September, will affect the company’s operations in Ontario and British Columbia, where Payday operates.
The move will affect all of its clients, including payday lenders, credit unions and other businesses that have accounts with Payday.
Payroll company Equifax says it expects to see about $2-billion in debt reduction and capital expenditures over the next six years.
The bank said last month that it expects its total debt to fall to $6-billion by the end of 2019.
It said in a report that it had already begun cutting jobs in its retail and technology sectors.
The cuts, which Equifax said will include layoffs in the bank’s retail and tech divisions, will help the company reduce its debt by $4.6-million.
The Waterloo, Ontario-based company said the layoffs were a result of a combination of “continuing restructuring efforts and an impact from the restructuring of the company.”
The Waterloo layoffs come as the bank struggles with a ballooning debt load.
The bank is also facing an ongoing lawsuit from its former CEO, Michael Cusimano, over his handling of the fallout from the hack of its computer system.
PayDay Loans has struggled to find profitable ways to make loans, with the company recently losing about $100-million in revenue.
The bankruptcy plan also calls for Payday to sell off some assets and take out more debt.