Crypto

Loss of interest in cryptocurrencies: American online brokerage platform Robinhood fires 750 people

US online brokerage platform Robinhood will lay off 23% of its staff, or more than 750 people, as interest in the stock market and cryptocurrencies largely waned due to the boom seen during the pandemic.

“Last year, we recruited on the assumption that the appetite for the stock market and cryptocurrencies seen in the Covid era will continue into 2022,” boss Vlad Tenev explained in a letter to employees posted on the company blog.

The California-based company already laid off about 9% of its workforce at the end of April after its active user count dropped by 8% between the third and fourth quarters of 2021. She also indicated that she would focus on cost control.

“That was not enough,” notes Vlad Tenev in his letter addressed to “Robinhoodie” (“Robinhoodie”, a pun between Robin Hood and “hoodie”, which means hoodie).

“Since then, we have witnessed an even worse macroeconomic environment with inflation hitting its highest level in 40 years, accompanied by a crash in the crypto market,” he explains. “This further reduced our customer base and assets under our control.”

The platform, which went public a year ago, retains about 2,600 employees after laying off a total of about 1,100 people.

According to the boss, this second wave of layoffs will affect all professions, but primarily operations and marketing.

The service had about 15 million monthly active users at the end of June, down 28% from last year, according to its quarterly earnings report released Tuesday. Its turnover fell by 44% in a year.

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