For the second time this 12 months, Robinhood is slicing its headcount. On Tuesday, the corporate it will lay off 23 p.c of its workforce. According to CEO Vlad Tenev, the cuts will have an effect on each half of Robinhoods enterprise however will primarily goal the companys operations, advertising and marketing and program administration capabilities.
Tenev blamed a deteriorating macro atmosphere for the choice, pointing to report inflation and the cryptocurrency crash as the first drivers of the companys current woes. Additionally, he acknowledged the corporate overhired final 12 months on the belief retail buyers would proceed buying and selling shares and crypto belongings on the charge that they had throughout the early phases of the pandemic. Prior to April when Robinhood , the corporate had a headcount of roughly 3,800. As CEO, I accredited and took accountability for our bold staffing trajectory that is on me, he mentioned.
On Tuesday, Robinhood additionally sooner or later forward of schedule. The firm reported a web loss of $295 million after income fell by 44 p.c year-on-year to $318 million.
In his letter to workers, Tenev mentioned Robinhood would transition to an organizational mannequin the place normal managers would oversee broad components of the companys enterprise. This change will flatten hierarchies, scale back cross-functional dependencies, and take away redundant roles and positions, he claimed. Tenev added that Robinhood would notify affected workers by way of Slack and e-mail. They can stick with the corporate till October 1st, 2022.
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