Robinhood will be reducing its staff by 23 percent, an unprecedented number of people. Some 780 people will be losing their jobs in major departments, like operations, programming management work spaces, and marketing. However, the anti-money laundering sector will not be affected.
Vlad Tenev CEO and Co-Founder of Robinhood released a statement in a blog explaining the situation. He wants to redeem his company’s decision by providing an appropriate reason. Some time earlier this year, Robinhood announced that it will be removing around 9 percent of its work force while focusing on “greater cost discipline throughout the organization“.
But Tenev admits that these measures were not enough, for “additional deterioration” in the macro systems have made matters more delicate, while the inflation at “40-year highs” and the fluctuating crypto industry accompanied by occasional market crashes only exacerbates the issue. According to the CEO these elements have actively reduced the trading activity on Robinhood’s platform.
Furthermore, some are turning to the rumors that FTX is to be acquiring Robinhood as a genuine reason for these job cuts, However FTX has denied these rumors, although it is an industry fact that during acquisitions and mergers the certain echelons are reduced.
Robinhoods early 9% layoff of staff equaled around 340 lost jobs. The platform’s revenue reportedly dropped to $318 million, which is very significant considering that at this same time last year it was at $565 million, a 44% increase.
