- Robinhood is laying off 9% of its total workforce today.
- The decision came due to a change in Robinhood customers’ behavior, growth declines, and duplicate roles and job functions.
- Although Robinhood is laying off its employees, the firm is still hiring numerous crypto roles and positions.
CEO Vlad Tenev announced in a blog post that brokerage app Robinhood is laying off 9% of its workforce today. Tenev pointed out that the decision is “necessary” and not that they “undertook lightly.”
“We’re anticipating and being responsive to changes in the way our customers invest—especially during this time of global conflict, economic uncertainty, and high inflation,” Tenev mentioned while explaining their decision.
He also revealed that the company is focusing on “internal opportunities for automation” and scrutinizing its headcount growth targets. These led to some “duplicate roles and job functions” at the company, he said.
Tenev said the company went through a “period of hyper-growth”. He cited several culprits such as the COVID-19 lockdowns, low-interest rates, and fiscal stimulus.
Robinhood’s net funded accounts increased from 5 million to 22 million. Also, its revenue surged from $278 million in 2019 to over $1.8 billion in 2021. To satisfy customers’ needs and demands, their headcount grew almost 6 times, from 700 to 3800 in that time period.
Robinhood hasn’t mentioned what departments or roles the 300 to 350 layoffs will come from.
The executive said that they will still continue to accelerate their “product momentum through 2022. They will also introduce key new products across Brokerage, Crypto, and Spending/Saving.”
The trading firm is still listing a number of open positions despite laying off a large portion of its employees. They listed positions such as engineering, legal, marketing, operations, product teams, and 12 different crypto-linked roles.
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