Silicon Valley-based online trading app Robinhood has sacked 23 percent of its workforce, just three months after the fintech platform cut 9 percent of its workforce amid the global economic turmoil.
According to a TechCrunch report, the 23 per cent reduction will result in layoffs of around 713 employees, leaving around 2,400 employees at the company.
In a blogpost, Robinhood CEO and co-founder Vlad Tenev said that ’employees across all functions will be affected’ and the layoffs are ‘specifically focused on the company’s operations, marketing and program management functions.’
“As part of a broader company restructuring into a general manager (GM) structure, I have just announced that we are reducing our workforce by approximately 23 percent,” Tenev said late Tuesday.
“In this new environment, we are dealing with more staff than is appropriate. As CEO, I have taken responsibility for our ambitious staffing trajectory and that is up to me,” Tenev said late Tuesday.
Robinhood Also Disclosed Its Second-Quarter Results, Reporting Net Revenue of $31.8 Million on A Net Loss of $29.5 Million
The Wall Street Journal said Robinhood has been fined $30 million by a New York financial regulator specifically for its cryptocurrency trading arm.
Tenev said since the first 9 percent layoff, the company has seen inflation hit a 40-year high and an additional fall in the macro environment with a broader crypto market crash.
“This has reduced customer business activity and custodial assets,” he said.