For the second time this yr, Robinhood is slicing its headcount. On Tuesday, the corporate introduced it could lay off 23 % of its workforce. According to 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, marketing and program management functions.”
Tenev blamed a deteriorating macro setting for the choice, pointing to file inflation and the cryptocurrency crash as the first drivers of the corporate’s current woes. Additionally, he acknowledged the corporate overhired final yr on the idea retail buyers would proceed buying and selling shares and crypto belongings on the fee they’d in the course of the early levels of the pandemic. Prior to April when Robinhood laid off 9 % of its workforce, the corporate had a headcount of roughly 3,800. “As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me,” he stated.
On Tuesday, Robinhood additionally introduced its Q2 outcomes at some point forward of schedule. The firm reported a internet lack of $295 million after income fell by 44 % year-on-year to $318 million.
In his letter to workers, Tenev stated Robinhood would transition to an organizational mannequin the place normal managers would oversee broad elements of the corporate’s enterprise. “This change will flatten hierarchies, reduce cross-functional dependencies, and remove redundant roles and positions,” he claimed. Tenev added that Robinhood would notify affected workers by way of Slack and e-mail. They can stick with the corporate till October 1st, 2022.