It has been a challenging year for the retail investment company. According to the Wall Street Journal, the company is cutting 23% of its workforce. Three months later, Robinhood cut 9% of full time staff.
At the time of its last layoffs in April, it is thought that the company had about 3,100 employees. A 23% reduction in staff would leave about 2,400 employees at the company.
The company did not comment directly on the layoffs but pointed to a post by the CEO. The layoffs are concentrated in the company's operations, marketing and program management functions.
Tenev took responsibility for the over-hiring that took place in the frenzy of 2021. He said that the company last year assumed that theightened retail engagement would continue in 2022.
He wrote that they were operating with more staff than appropriate. I took responsibility for our staffing trajectory as CEO.
The previous round of layoffs did not go far enough, Tenev said.
Tech layoffs don’t happen to companies, they happen to people
The macroeconomic environment has deteriorated since that time with inflation at 40-year highs and a broad market crash. Customer trading activity has been reduced by this. According to sources, the company cut another 7% of staff just seven weeks after cutting 10% of its workforce, and is not the only one to do so.
Net revenue was $318 million and the company had a net loss of $295 million in the second quarter. In the first quarter of the year, it had a net loss of $400 million, or 45 cents per share.
While transaction-based revenue was down, cryptocurrencies increased.
Expenses will be $17 million in connection with the April restructuring and an estimated $65 million to $90 million with the August restructuring. Total operating expenses are expected to be down between 7% and 10% from the previous year, according to a new report.
The stock price has fluctuated over the past year. The company is trading at $8.90 after hours, which is lower than it's high of $85. After hours, it is also down.
The WSJ reported earlier today that a New York financial regulators slapped a $30 million fine on the company.
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