The CEO of Robinhood has announced further layoffs, letting go of about 23% of its staff. The company currently has 3,100 workers, after firing 9% of its full-time staff in April.
The layoffs will be concentrated in the departments of operations, marketing, and program management functions.
According to a blog post by Vlad Tanev, the co-founder and CEO of Robinhood, the company is operating with more staffing than necessary, adding that the first round of layoffs did not go far enough.
He writes that the reason for this round of layoffs is ‘…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.’
The blog states that the employees being let go will be offered the opportunity to remain employed with the company until October 1, 2022. They will receive their regular pay and benefits (including equity vesting) and offered cash severance, payment of COBRA medical, dental and vision insurance premiums and job search assistance.
He further takes responsibility for Robinhood’s over-hiring frenzy in 2021 ‘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.’
Robinhood also released its second quarter financials today, revealing a 6% increase in net revenue of $318 million on a net loss of $295 million or 34 cents per diluted share.