Robinhood is letting go of nearly a quarter of its workforce, CEO Vlad Tenev said in a post on the company’s blog.
“As part of a broader corporate reorganization to a General Manager (GM) structure, I just announced that we are reducing our workforce by approximately 23%,” Tenev wrote. “While employees of all functions are affected, the changes are mostly concentrated in our operations, marketing and program management functions.”
The announcement came as Robinhood released its second quarter 2022 earnings information a day ahead of schedule, with total revenue of $318 million for the three months, down 44 percent from the same period in 2021.
In April, Robinhood said it planned to cut 9 percent of its full-time staff, but “this didn’t go far enough,” Tenev said. The company had hired staff on the assumption that increased trading after things like the GameStonk phenomenon and bullish crypto markets would continue through 2022, but has run into the headwinds of inflation and the so-called “crypto winter” that is hitting other companies. Those affected by the cuts can stay with Robinhood until Oct. 1 at their regular pay and benefits, in addition to severance pay, Tenev says.
Many companies have had to lay off or lay off staff in recent weeks. Tesla has laid off nearly 200 Autopilot employees, while Shopify has laid off 10 percent of its staff.