For the second time this yr, Robinhood is reducing its headcount. On Tuesday, the corporate it might lay off 23 p.c of its workforce. Based on CEO Vlad Tenev, the cuts will have an effect on each a part of Robinhood’s enterprise however will primarily goal the corporate’s “operations, advertising and program administration capabilities.”
Tenev blamed a deteriorating macro setting for the choice, pointing to document inflation and the cryptocurrency crash as the first drivers of the corporate’s current woes. Moreover, he acknowledged the corporate overhired final yr on the belief retail buyers would proceed buying and selling shares and crypto property on the charge they’d through the early levels of the pandemic. Previous to April when Robinhood , the corporate had a headcount of roughly 3,800. “As CEO, I accredited and took accountability for our bold staffing trajectory – that is on me,” he mentioned.
On Tuesday, Robinhood additionally at some point forward of schedule. The corporate reported a internet lack of $295 million after income fell by 44 p.c year-on-year to $318 million.
In his letter to staff, Tenev mentioned Robinhood would transition to an organizational mannequin the place basic managers would oversee broad components of the corporate’s enterprise. “This alteration will flatten hierarchies, scale back cross-functional dependencies, and take away redundant roles and positions,” he claimed. Tenev added that Robinhood would notify affected staff through Slack and e-mail. They’ll stick with the corporate till October 1st, 2022.
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