RobinHood is now laying off 23% of its workforce as according to CEO Vlad Tenev, these new job cuts will affect every part of the company’s business, but it will primarily target the company’s operations, marketing, and program management functions.
The CEO blamed the deteriorating macro environment for the decision, saying that record inflation and the cryptocurrency crash are the primary drivers of these new roles from the company’s end. He did acknowledge the fact that the company did overhire last year, saying that retail investors would continue trading stocks and crypto assets at the rate they had during the early stages of the pandemic.
Amidst all of this, The company also announced its Q2 results one day ahead of schedule on Tuesday reporting a net loss of $295,000,000 after revenue fell by over 44%. In a letter to the employees, the CEO said that the company would transition to an organizational model where general managers would oversee broad parts of the company’s business, and this change “Will flatten hierarchies, reduce cross functional dependencies, and remove redundant roles and positions” The effect that employees have been notified through slack and e-mail and they can stay with the company until October 1st, 2022.
