As stocks and cryptocurrencies struggle to deliver returns, the number of active users at Robinhood has fallen by a third.
According to the second-quarter earnings report released Tuesday, the number of monthly active users of the trading app fell 34% over the last year.
Retail investors have had a tough time with rising interest rates and recession fears.
The S&P 500 has lost over 15% of its value so far this year and the price of bitcoin has plummeted by over 50%.
The macro environment has deteriorated with inflation at 40-year highs and a broad market crash. Customer trading activity has been reduced.
Tenev announced a new round of job cuts, saying that the company needed to downsize due to its diminishing user base.
He said that there would be a 23% reduction in the number of employees. Changes are concentrated in our operations, marketing, and program management functions.
During the coronaviruses epidemic, a boom in first-time retail investing occurred. Tenev admitted that the company hired too many people.
He said that "last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock andcryptocurrencies in the COVID era would continue into 2022," I took responsibility for our staffing trajectory as CEO.
The stock of the company fell in the early morning to trade at $9.18
More than 30,000 tech workers lost their jobs in July. They have their own stories to tell.
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