Robinhood cuts practically 1 / 4 of its workforce: NPR


in 2021 People wait in line for T-shirts at a Robinhood pop-up kiosk in New York after the company went public on July 29. On Tuesday, the company announced it was cutting nearly a quarter of its workforce.

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in 2021 People wait in line for T-shirts at a Robinhood pop-up kiosk in New York after the company went public on July 29. On Tuesday, the company announced it was cutting nearly a quarter of its workforce.

Spencer Platt/Getty Images

Trouble is mounting for Robinhood, a company that had big ambitions to change the markets by bringing millions of amateur investors into stock trading for the first time.

on Tuesday, the company announced plans to cut nearly a quarter of its workforce, citing economic uncertainty, a major cryptocurrency selloff, and a deteriorating market environment.

It’s the second round of layoffs at Robinhood, which cut its workforce by about 9% in April.

The cuts mark yet another shift for the company that created the stock-trading app that became wildly popular as COVID-19 spread and the economy stalled, leaving millions at home with plenty of time on their hands.

At the time, interest rates were close to zero, tech companies were expanding, and Americans had extra cash thanks to stimulus checks from the federal government.

But a deep market downturn this year has dented Robinhood’s fortunes. After raising almost 2 billion when he went public in the high-profile initial public offering in 2021.

General director Vladas Tenevs admitted on Tuesday in a blog post that the first cut a few months ago “didn’t go far enough.”

“As CEO, I have endorsed and taken responsibility for our ambitious HR trajectory — it’s up to me,” he wrote. “In this new environment, we are working with more staff than necessary.


Robinhood CEO Vlad Tenev took responsibility after the company announced it was cutting 23% of its workforce.

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Robinhood CEO Vlad Tenev took responsibility after the company announced it was cutting 23% of its workforce.

Spencer Platt/Getty Images

It’s been a tough year for stocks trading in 2021. at the end was a record high. Persistently high inflation has led the Federal Reserve to aggressively raise interest rates, which has hit high-growth technology stocks particularly hard.

Also, the world is learning to live with a pandemic and people are no longer in their homes. As a result, Robinhood experienced a sharp decline in active users and revenue.

Robinhood also attracted the attention of the government.

Also on Tuesday, New York’s financial regulator allocated 30 million to the company “due to significant failures in Bank Secrecy/Anti-Money Laundering obligations and cyber security.”

Robinhood isn’t the only tech company to lay off workers. Shopify, Netflix, Tesla and several cryptocurrency companies have also cut their workforces due to the worsening economic outlook.

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