Robinhood becomes the latest firm to lay off employees, 23 percent of its total workforce would be out of job but will have the opportunity to stay employed through October 1.
Robinhood CEO Vlad Tenev announced on Tuesday that the company would reduce its headcount by 713 employees, which is approximately 25 percent of its workforce.
“While employees from all functions will be impacted, the changes are particularly concentrated in our operations, marketing, and program management functions,” he said in a message posted on the company’s blog.
The decision comes as a result of the deterioration of the macro environment, inflation at a 40-year-high and a broad crypto market crash that has led to limited trading activity. In April, Tenev said that Robinhood would be laying off nine percent of the total 3,400 employees, but it “did not go far enough”.
The financial services firm also announced total revenue of $318 million in its earnings report for the second quarter of 2022, which came a day earlier than scheduled. The revenue was 44 percent lower than 2021 in the same period.
The departing employees will be offered the opportunity to remain employed with the firm through October 1 and receive their regular pay and benefits.
Robinhood’s Chief Product Officer, Aparna Chennapragada, is also stepping down from her post as the company moves to a General Manager (GM) structure. She “will remain employed in an advisory role to the CEO or his designee through January 2, 2023,” according to a Form 8-K report by Robinhood.
Robinhood is among the many firms that have laid off employees or paused hiring for the year, including tech giants like Google, Apple, Microsoft and Meta.
First Published: IST