The Strategist

Online broker Robinhood will lay off 23% of its employees to cut costs

08/03/2022 - 10:36

Approximately 23% of the personnel at the well-known trading platform Robinhood Markets will be let go as the online broker's business suffered as a result of a dramatic decline in user trading activity.
The CEO and co-founder of the online broker, Vlad Tenev, stated on Tuesday, August 2 in a corporate blog that Robinhood will let go of 23 percent of its workforce. The first round of layoffs at the firm occurred in April, when the online broker announced cuts on 9% of the workforce. Since the start of the year, Robinhood has eliminated more than 1,000 positions at the business.

The company's executive claims that a more extensive redesign of the trading platform goes hand in hand with the layoffs. Vlad Tenev claimed that the April wave of layoffs "didn't go far enough" to assist the business in reducing costs. He said that in 2021, the business was staffing its operational divisions "based on the expectation that the greater retail activity we experienced in the stock and cryptocurrency markets during the Covid era will continue in 2022."

Tenev reported that the company's personnel increased from roughly 700 at the end of 2019 to nearly 3,900 in the first quarter of 2022. He added that the business is using "more people than necessary" in the new climate.

Most of the positions affected by the layoffs will be in operations, marketing, and program management. Tenev connected them to "a worsening macroeconomic environment, inflation at 40-year highs, accompanied by a widespread collapse of the crypto market."



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