The retail trading platform Robinhood Markets Inc. announced on Tuesday that it is firing around 23% of its workforce, causing its shares to decline more than 3% in after-hours trading.
In order to “achieve greater cost discipline,” the company is also revamping its organizational structure, according to blog post by Robinhood CEO Vlad Tenev. Robinhood already reduced 9 percent of its personnel in April, claiming that the expansion of the business had resulted in several employment functions and roles being duplicated.
Tenev stated on Tuesday that those reduction weren’t sufficient.”This is on me,” Tenev stated. “As CEO, I approved and assumed responsibility for our ambitious staffing trajectory. During the COVID-19 pandemic, young investors who were trading from home on cryptocurrencies and equities like GameStop Corp found Robinhood to be popular due to its user-friendly interface.
However, due to its customer base being alarmed by rising interest rates and inflation that is at a record high, the corporation has reported revenue reductions.
