Commission-free investment platform Robinhood Markets Inc (NASDAQ:HOOD). has announced the release of 23% of its staff as part of its efforts to reorganize, citing economic uncertainty and the deteriorating market environment.
Robinhood Lays Off 23% of Its Staff
In a Tuesday blog post, Robinhood announced that it would be laying off 23% of its staff, at roughly 780 employees. The job cut follows a 44% decline in overall revenue for the company, slumping trade activity, and a Q2 net loss of $295 million.
The job cut represents one aspect of Robinhood’s reorganization efforts, which also resulted in the closure of two of its office branches.
The layoffs are the second such instance in three months, after Robinhood initially cut 9% of its full-time staff, releasing 300 workers in April.
Vlad Tenev Takes Responsibility
In the company’s official blog post, CEO and Co-Founder of Robinhood Vlad Tenev took responsibility for the reductions, explaining that the company had over-hired in the frenzy that ensued in 2021.
Tenev accepted the blame, stating: “as CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me.”
According to the Robinhood CEO, “employees from all functions” will be impacted. He added that the layoffs were “particularly concentrated” in the company’s operations, marketing and program management departments.
On the Flipside
- The New York State Department of Financial Services has slapped Robinhood with a $30 million fine for the violation of anti-money-laundering and cybersecurity regulations.
Why You Should Care
Impacted by the crypto slump over the last eight months, Robinhood is looking to reorganize its structure to drive greater cost discipline and cope with the crypto winter.
Users are leaving Robinhood. Find out more in:
The Charm Fades: Users Leave Robinhood
Read more about the Robinhood fines below:
Robinhood Crypto Unit Fined in New York for Violating Money Laundering Rules