Fintech platform Robinhood fires 713 employees, CEO says ‘it’s on me’

Silicon Valley-based e-commerce app Robinhood has laid off 23 percent of its workforce, just three months after the fintech platform cut its workforce by 9 percent amid global economic turmoil.

A reduction of 23 percent will correspond to around 713 employees being laid off, leaving almost 2,400 employees in the company, reports TechCrunch.

In a blog post, Robinhood CEO and co-founder Vlad Tenev said that “employees from all functions will be affected” and the layoffs are “particularly concentrated in the company’s operations, marketing and program management.

“As part of a broader reorganization of the company into a General Manager (GM) structure, I just announced that we are reducing our headcount by approximately 23 percent,” Tenev said late Tuesday.

“In this new environment, we are operating with more staffing than is appropriate. As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me,” Tenev said late on Tuesday.

Tenev also said the previous round of layoffs “didn’t go far enough.”

Robinhood also revealed its second-quarter results, reporting net revenue of $318 million on a net loss of $295 million.

The Wall Street Journal said Robinhood has been fined $30 million by a New York financial regulator, specifically on its cryptocurrency trading arm.

Tenev said that since the previous 9 percent layoff, the company has seen further deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crash in the crypto market.

“This has further reduced customer trading activity and assets under custody,” he added.

— IANS

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(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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