Retail trading giant Robinhood is laying off about 23% of its employees as trading activity on the platform declines.
In a new statement, the firm’s CEO Vlad Tenev says that the company is slashing the size of its workforce partly because of the crypto crash.
The layoffs come after the company already announced a 9% staff cut in April.
“Earlier this year, I announced that we would be letting go of 9% of our workforce and focusing on greater cost discipline throughout the organization. This did not go far enough.
Since that time, 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.”
Robinhood went on a hiring spree last year, but Tenev says the company’s growth trajectory reversed because of bear markets in crypto and stocks.
“Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022. In this new environment, we are operating with more staffing than appropriate.”
The CEO says that the firm will be restructuring itself amid the layoff with an aim to remove redundant roles and positions.
Tenev’s statement comes as Robinhood released its financial results for Q2, which show the company’s total net revenues increased by 6% sequentially to $318 million.
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