Robinhood is laying disconnected 9% of its full-time workforce, CEO Vlad Tenev announced, arsenic the shares of the company's banal deed a caller low.
Tenev, successful a blog post, said that the lay-offs came aft a headcount maturation that "led to immoderate duplicate roles and occupation functions, and much layers and complexity than are optimal."
According to Reuters, the online trading level had 3,400 employees, truthful astir 300 radical whitethorn beryllium affected by the cut.
Since the opening of 202, Robinhood has witnessed an summation successful its employees from 700 to 3,800.
Regardless of the lay-off, Robinhood claims that its fiscal presumption is strong. Tenev announced that the institution has implicit $6 cardinal successful currency connected its equilibrium sheet.
Tenev said, "after cautiously considering each these factors, we determined that making these reductions to Robinhood's unit is the close determination to amended efficiency, summation our velocity, and guarantee that we are responsive to the changing needs of our customers."
Following the quality of the lay-off, shares of the company's banal closed astatine $10 connected Tuesday, the lowest terms since Robinhood went nationalist successful July 2021.
Robinhood’s layoff announcement comes days earlier the institution is expected to study its Q1 2022 fiscal performance.
The institution posted a $423 cardinal nett nonaccomplishment for its past quarter.
In 1 of its large caller crypto developments, Robinhood officially rolled retired its long-awaited cryptocurrency wallet successful aboriginal April, providing entree to much than 2 cardinal customers connected the waiting database for the integer product.
The merchandise of the wallet shows the company's committedness to the crypto space, Robinhood said. Robinhood's wallet volition let users to acquisition crypto enactment extracurricular the company's trading platform, specified arsenic buying non-fungible tokens (NFTs).
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