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Robinhood CEO Vlad Tenev mentioned the layoffs had been concentrated in its operations, advertising and marketing, and program administration departments.
Another Robinhood Staff Cut
Robinhood is letting go of much more workers.
A Tuesday night weblog publish from Robinhood CEO Vlad Tenev has revealed that the corporate is lowering its headcount by an extra 23%. Explaining the choice, Tenev cited the troubling macroeconomic atmosphere, which has weighed closely on each the equities and crypto markets for the reason that begin of the 12 months.
“We have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody,” he mentioned, whereas additionally clarifying that the layoffs had been concentrated within the firm’s operations, advertising and marketing, and program administration departments.
The Tuesday announcement just isn’t the primary time Robinhood has decreased its workers this 12 months. In April, the corporate first reduce 9% of its 3,800 employees in a bid to cut back prices and enhance effectivity. After these newest cutbacks, Robinhood is estimated to have 2,662 workers left on its payroll.
Soaring inflation and subsequent rate of interest hikes from the Federal Reserve crushed risk-on belongings within the first half of 2022. High-growth tech shares and cryptocurrencies, which have sometimes acquired the best buying and selling volumes from Robinhood customers, have fared poorly this 12 months, an element that could be contributing to the app’s struggling backside line.
Tenev ended his observe by guaranteeing all affected workers that they might be provided the chance to stay employed with Robinhood by means of October 1, 2022, whereas receiving their common pay and advantages. He additionally mentioned workers exiting the corporate can be provided money severance, cost of COBRA medical, dental and imaginative and prescient insurance coverage premiums, and job search help.