Robinhood cuts 23% of its workforce, revenue drops 44%

The latest cut affecting 780 employees continues a massive plunge for the once-high online brokerage firm. fined a dollar.

In a blog post on the company’s website, Robinhood CEO Vlad Tenev said that the company’s customer trading activity and assets under custody have declined due to “deteriorating macro conditions,” particularly decades of high inflation and a cryptocurrency crash. said he did.

In its second-quarter earnings report, also released Tuesday, the company showed a 44% decline in sales from a year ago. Robinhood monthly active users in June was down more than $7 million (34%), and assets under custody were down more than $37 billion (31%) from the second quarter of last year.

The company’s approach to staffing and operations has been aligned with the continuation of the pandemic-era high-growth crypto boom, he added.

In a message to employees, Teneff said, “Assuming that the heightened retail engagement seen in the stock and crypto markets last year during the COVID-19 era will continue into 2022, many operational functions will continue to grow. has been staffed,” he said. “In this new environment, we are more than adequately staffed and running.”

“As CEO, I have endorsed and taken responsibility for an ambitious staffing trajectory.This is my responsibility.”

The layoffs will affect employees in all departments of the company, with operations, marketing and program management positions being hit hardest, he said. The company had planned to notify all employees via email and his Slack on Tuesday of their status and resources if they were affected.

“As the business has grown, Robinhood Crypto has failed to dedicate the appropriate resources and attention to developing and maintaining a culture of compliance. It led to a serious violation,” said Adrienne A. Harris. The department head said in a statement.