Popular trading platform Robinhood will lay off 23% of its staff as its online business suffers due to a sharp slowdown in user trading activity. The company’s chief executive, Vlad Tenev, said on July 2 that the previous round of layoffs in April (9% of staff) had not helped the company cut costs. In total, the company has cut more than 1,000 jobs since the beginning of the current year.
According to the head of the company, the dismissal is accompanied by a wider reorganization of the site’s work. Vlad Tenev noted that the previous round of layoffs in April “didn’t go far enough” to help the company cut costs.
Tenev says the company has increased the number of staff to almost 3,900 people in the first quarter of 2022 from about 700 people at the end of 2019. According to Tenev, under the new conditions the company is operating “with a larger number of employees than necessary “.
The cuts will be primarily in operations, marketing and program management. Tenev links them to “a worsening macroeconomic environment, inflation at 40-year highs, accompanied by a broad collapse of Cryptorrhniki.”
On August 4, the company will host a general meeting after the employees receive a layoff notice. In recent months, a number of tech companies, including Twitter, Netflix and Tesla, have laid off employees as they face slowing growth and the threat of a looming recession.
Robinhood reports its second quarter results on August 2. The number of active users of the platform on a monthly basis decreased to 14 million people, which is 34% less than in August 2021. Revenue reported a drop of 44%, to 318 million USD, compared to the second quarter of last year. As of now, the company remains with 21 million active users.
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2.9
Assessment 2.9 from 19 voice.
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