Robinhood CEO Vlad Tenev mentioned Tuesday in a press release that the fintech firm will cut back its headcount by roughly 23%.
The layoffs can be primarily in operations, advertising and program administration. Within the launch, Tenev blamed “deterioration of the macro setting, with inflation at 40-year highs accompanied by a broad crypto market crash.”
Robinhood laid off 9% of its workforce in April.
“I wish to acknowledge how unsettling all these adjustments are,” Tenev mentioned.
The Robinhood web site dwelling display on a smartphone.
Gabby Jones | Bloomberg | Getty Photographs
Within the launch, Tenev mentioned the corporate would flatten its organizational construction to provide new normal managers broad duty for its companies. He additionally mentioned that affected staff would obtain an electronic mail and a Slack message letting them know in the event that they had been being let go or nonetheless had a job, instantly after an all-hands assembly to debate the transfer on Thursday.
The corporate additionally launched its earnings report for the second quarter, in the future sooner than anticipated. This is the way it did.
- Income: $318 million vs. $321 million estimated, in keeping with Refinitiv
- Loss: 34 cents per share vs. 37 cents estimated, in keeping with Refinitiv
Robinhood’s complete internet income of $318 million was up from $299 million within the first quarter, due to a rise in income from cryptocurrency actions and internet curiosity. Nevertheless, that income quantity was nonetheless effectively beneath the $565 million reported within the second quarter of 2021.
The report additionally confirmed a decline in month-to-month lively customers and belongings beneath custody.
Robinhood has seen development reverse because the pandemic increase in retail buying and selling appeared to lose steam.
The corporate went public in July 2021 at $38 per share, and its inventory jumped as excessive as $85 per share in its first month of buying and selling.
Nevertheless, the inventory shortly declined. Shares of Robinhood are down 48% yr so far and closed at $9.23 per share Tuesday.
Shares had been down about 2% in after-hours buying and selling.
— Jesse Pound contributed to this report.
