Robinhood cutting about 9% of full-time employees

After rapid expansion last year, retail brokerage firm Robinhood is cutting back on staffing levels.

The announcement was made in a post by the CEO. In the extended trading, shares fell more than 4%.

9% of full-time employees will be affected by the move. Depending on recent hiring trends, 9% would be around 340 people or more.

We determined that making these reductions to the staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers, Tenev wrote.

The decision to take this action wasn't easy, but it is a deliberate step to ensure we are able to continue delivering on our strategic goals.

The results of the first quarter are expected to be released after the bell on Thursday. The company has more than $6 billion in cash on its balance sheet according to the post.

The company will review employee growth plans and continue to prioritize internal opportunities for automation and operational efficiency, Tenev wrote.

In early 2021, Robinhood became a key player in the GameStop saga, where retail investors bid up so-called meme stocks.

The public markets saw a surge of new customers and cash as the brokerage entered through an IPO in July. The stock gained little traction and has traded below its IPO price for much of its existence. On Tuesday, shares closed at $10

The company shed monthly active users during the fourth quarter, and its first-quarter results will be compared to the mania of the first quarter of 2021.

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