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Robinhood lays off almost 25 % of its staff

For the next time this season, Robinhood is cutting its headcount. On Tuesday, the business announced it could lay off 23 percent of its workforce. In accordance with CEO Vlad Tenev, the cuts will affect all of Robinhoods business but will primarily target the companys operations, marketing and program management functions.

Tenev blamed a deteriorating macro environment for your choice, pointing to record inflation and the cryptocurrency crash because the primary drivers of the companys recent woes. Additionally, he acknowledged the business overhired this past year on the assumption retail investors would continue stock trading and crypto assets at the rate that they had during the first stages of the pandemic. Ahead of April when Robinhood let go nine percent of its workforce, the business had a headcount of around 3,800. As CEO, I approved and took responsibility for the ambitious staffing trajectory that is on me, he said.

On Tuesday, Robinhood also announced its Q2 results 1 day before schedule. The business reported a net lack of $295 million after revenue fell by 44 percent year-on-year to $318 million.

In his letter to employees, Tenev said Robinhood would transition to an organizational model where general managers would oversee broad elements of the companys business. This change will flatten hierarchies, reduce cross-functional dependencies, and remove redundant roles and positions, he claimed. Tenev added that Robinhood would notify affected employees via Slack and email. They are able to stay with the business until October 1st, 2022.

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