Robinhood is cutting staff for the second time this year. The company announced that it would lay off 23 percent of its workforce. According to CEO Vlad Tenev, this will affect every part of Robinhood’s business, but will mainly affect “operations, marketing, and program management functions.”
Tenev blamed the deteriorating macro environment, pointing to record inflation and the collapse of the cryptocurrency as the main reasons for the company’s recent troubles. He also acknowledged that the company hired too many employees last year, assuming that retail investors will continue to trade stocks and crypto assets at the same rate as in the early days of the pandemic. Until April, when Robinhood laid off nine percent of its employees, the company employed about 3,800 people. “As CEO, I have endorsed and taken responsibility for our ambitious talent trajectory – that is my responsibility,” he said.
Robinhood also announced secondquarter results a day ahead of schedule, posting a net loss of $295 million after revenue fell 44 percent yearonyear to $318 million.
In a letter to employees, Tenev said that Robinhood will move to an organizational model in which general managers control broad areas of the company’s business. “This change will flatten hierarchies, reduce crossfunctional dependencies, and remove redundant roles and titles,” he said. Tenev added that affected employees will be notified via Slack and email.
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