Trading Giant Robinhood Laying Off Nearly a Quarter of Staff, Says Crypto Crash Partly to Blame

Retail trading giant Robinhood is laying off about 23% of its employees as trading activity on the platform declines.

In a new statement, the firms CEO Vlad Tenev says that the company is slashing the size of its workforce partly because of the crypto crash.

The layoffs come after the company already announced a 9% staff cut in April.

Earlier this year, I announced that we would be letting go of 9% of our workforce and focusing on greater cost discipline throughout the organization. This did not go far enough.

Since that time, we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody.”

Robinhood went on a hiring spree last year, but Tenev says the company’s growth trajectory reversed because of bear markets in crypto and stocks.

Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022. In this new environment, we are operating with more staffing than appropriate.

The CEO says that the firm will be restructuring itself amid the layoff with an aim to remove redundant roles and positions.

Tenevs statement comes as Robinhood released its financial results for Q2, which show the companys total net revenues increased by 6% sequentially to $318 million.

Don’t Miss a Beat Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstocl/Fona