Robinhood CEO Vlad Tenev said Tuesday in a press release that the fintech company will reduce its headcount by roughly 23%.
The layoffs will probably be primarily in operations, marketing and program management. In the discharge, Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”
Robinhood laid off 9% of its workforce in April.
“I would like to acknowledge how unsettling all these changes are,” Tenev said.
The Robinhood website home screen on a smartphone.
Gabby Jones | Bloomberg | Getty Images
In the discharge, Tenev said the corporate would flatten its organizational structure to present recent general managers broad responsibility for its businesses. He also said that affected employees would receive an email and a Slack message letting them know in the event that they were being let go or still had a job, immediately after an all-hands meeting held on Tuesday.
The corporate also released its earnings report for the second quarter, someday sooner than expected. Here’s the way it did.
- Revenue: $318 million vs. $321 million estimated, in response to Refinitiv
- Loss: 34 cents per share vs. 37 cents estimated, in response to Refinitiv
Robinhood’s total net revenue of $318 million was up from $299 million in the primary quarter, due to a rise in revenue from cryptocurrency activities and net interest. Nonetheless, that revenue number was still well below the $565 million reported within the second quarter of 2021.
The report also showed a decline in monthly lively users and assets under custody.
Robinhood has seen growth reverse because the pandemic boom in retail trading appeared to lose steam.
The corporate went public in July 2021 at $38 per share, and its stock jumped as high as $85 per share in its first month of trading.
Nonetheless, the stock quickly declined. Shares of Robinhood are down 48% 12 months to this point and closed at $9.23 per share Tuesday.
Shares were down about 2% in after-hours trading.
— Jesse Pound contributed to this report.
Correction: On account of an editing error, the unique version said employees can be notified on Thursday. They were notified on Tuesday.