The Robinhood website home screen on a smartphone.
Gabby Jones | Bloomberg | Getty Images
Robinhood CEO Vlad Tenev said in a press release Tuesday that the company will reduce its workforce by about 23%.
The layoffs mainly affect operations, marketing and program management. In the release, Tenev blamed “the deterioration of the macro environment, with inflation at its 40-year high, accompanied by a broad crypto market crash.”
Robinhood had previously laid off 9% of its staff in April.
“I want to acknowledge how disturbing these kinds of changes are,” Tenev said.
In the release, Tenev said the company would flatten its organizational structure to give new general managers broad responsibility for its operations. He also said affected workers would receive an email and a Slack message letting them know if they were fired or still in employment, immediately after a meeting to discuss the move on Thursday.
The company also dropped its second-quarter earnings report, a day earlier than expected. Here’s how it did.
- Revenue: $318 million versus $321 million estimated, according to Refinitiv
- Loss: 34 cents per share versus 37 cents estimated, according to Refinitiv
Robinhood’s total net sales of $318 million were up from $299 million in the first quarter, thanks to an increase in cryptocurrency business revenues and net interest. However, that revenue figure was still well below the $565 million reported in the second quarter of 2021.
The report also showed a decline in monthly active users and assets in custody.
The company has seen growth reverse as the pandemic retail boom seemed to lose momentum.
The company went public in July 2021 for $38 a share, and its share rose to $85 a share in the first month of trading.
However, the stock quickly lost steam. Shares of Robinhood are down 48% so far, closing at $9.23 a share on Tuesday.
In after-hours trading, the stock fell about 2%.
Jesse Pound contributed to this report.