Robinhood is letting go of nearly a quarter of its staff, CEO Vlad Tenev said in a message posted to the company’s blog.
“As part of a broader company reorganization into a General Manager (GM) structure, I just announced that we are reducing our headcount by approximately 23%,” Tenev wrote. “While employees from all functions will be impacted, the changes are particularly concentrated in our operations, marketing, and program management functions.”
Robinhood’s Q2 2022 earnings information was released a day early than expected. The company reported total revenue of $318 millions over the three months. This is 44 percent less than the same period 2021.
In April, Robinhood said it planned to cut 9 percent of its full-time staff, but “this did not go far enough,” Tenev said. The company had staffed up assuming that the increased trading after things like the GameStonk phenomenon and bullish crypto markets would carry into 2022 but has run into the headwinds of inflation and the so-called “crypto winter” that are affecting other companies. Tenev said that Robinhood will allow those affected by the cuts to continue at Robinhood through October 1, at their regular pay and benefits as well as a severance plan.
In recent weeks, many companies had to layoff or reduce employees. Tesla laid off nearly 200 Autopilot workers, while Shopify laid off 10% of its workforce.
Read the full article here
