Robinhood is shedding almost 1 / 4 of its employees, CEO Vlad Tenev stated in a message posted on the corporate’s weblog.
“As a part of a broader reorganization of the corporate right into a common supervisor (GM) construction, we’ve got simply introduced that we’re decreasing our headcount by roughly 23%,” Tenev wrote. “Whereas workers throughout all features will probably be affected, the modifications are significantly targeted in our operations, advertising and marketing and program administration features.”
The announcement got here as Robinhood launched its Q2 2022 earnings data a day sooner than scheduled, reporting complete income of $318 million over the three months, which is 44% decrease than in the identical interval from 2021.
In April, Robinhood stated it deliberate to chop 9 p.c of its full-time employees, however “that did not go far sufficient,” Tenev stated. The corporate constructed its employees on the idea that the buying and selling growth following issues just like the GameStonk phenomenon and crypto bull markets would proceed into 2022, however it has confronted the headwinds of inflation and the so-called “crypto winter” affecting different corporations. These affected by the cuts will be capable of keep at Robinhood till Oct. 1 with common wage and advantages, together with a severance bundle, Tenev says.
Many corporations have needed to lay off or scale back employees in current weeks. Tesla laid off almost 200 Autopilot workers, whereas Shopify laid off 10% of its workforce.
