Online broker Robinhood will cut staff by about 23% amid worsening macroeconomic environment and negative phenomena in the cryptocurrency market. This was stated in a letter from the company’s CEO Vlad Tenev.
“In this new environment, we are working with more staff than necessary. As CEO, I approved and took responsibility for our ambitious staffing trajectory,” said the head of Robinhood.
The layoffs will affect employees in all departments, he said. According to the Financial Times, about 780 people will be out of work.
Tenev also announced adjustments in the organizational structure of the online brokerage. The changes should “flatten the hierarchy” and remove “redundant roles and positions.”
“Those who leave will be given the opportunity to remain employed at Robinhood until Oct. 1, 2022, and receive their regular salaries and benefits,” the letter said.
The company’s CEO promised the downsized employees severance pay, insurance premiums and assistance in finding a new position.
Robinhood published its financial report for the second quarter on Aug. 2, showing that the number of monthly users decreased by 1.9 million to 14 million. Operating expenses were down 12% to $610 million.
Thefirm had net income of $318 million, a 6% increase from the first quarter.
Compared to April-June 2021, however, the figure collapsed 44%. The loss per share was $0.34.
“While the decision to make additional staff reductions was difficult, we believe it is the right one and allows us to fulfill our mission to democratize finance,” Tenew said.
As a reminder, Robinhood now supports Grayscale cryptocurrency trusts.