About 23% Of Robinhood’s Jobs Are Being Cut, The Company Releases Its Second Quarter Earnings
In terms of layoffs, most of them will be in the areas of operations, marketing, and program management. As a result, Vlad Tenev, the CEO of IOTA, blamed inflation and a “broad crash in cryptocurrency prices.”
According to a press release issued by Robinhood CEO Vlad Tenev on Tuesday, the company intends to reduce its headcount by approximately 23% as a result of these cuts.
Layoffs are expected to be made primarily in the areas of operations, marketing, and program management. According to Tenev’s release, he attributed the market crash to “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad collapse in the crypto market.”
About 23% Of Robinhood’s Jobs Are Being Cut, The Company Releases Its Second Quarter Earnings
In April, Robinhood laid off 9% of its workforce as part of a restructuring plan.
“I want to acknowledge that these types of changes can be quite unsettling for some people,” Tenev said, expressing his concern.
Tenev said in a press release that the company would flatten its organizational structure in order to give its new general managers broad responsibilities for the company’s operations.
In addition to that, he also said that employees affected by the move would receive an email and a Slack message informing them if they were being let go or if they still had a job, after a meeting on Thursday to discuss the move.
As a result, the company also announced its earnings report for the second quarter one day earlier than expected. Let’s take a look at how it went.
Robinhood’s total net revenue increased from $299 million to $318 million in the first quarter due to an increase in cryptocurrency activities and net interest income.
It should be noted, however, that this revenue number is still well below the $565 million reported in the second quarter of 2021.
There was also a decline in the number of monthly active users and the amount of assets under custody, according to the report.
In the past few years, the company has seen its growth reverse as the pandemic boom in retail trading took a toll on its growth.
Its stock rose as high as $85 per share in its first month of trading after going public in July 2021 at $38 per share.
In spite of this, the stock quickly began to lose its momentum. The share price of Robinhood closed at $9.23 per share on Tuesday, down 48% year to date and down 48% year to date.
During the after-hours trading period, shares of the company were down about 2%.
