Vlad Tenev, CEO of Robinhood, said in a press release on Tuesday that the fintech company would reduce its headcount by about 23%.
The layoffs are primarily in operations, marketing and program management. In the press release, Tenev blamed “a deteriorating macro environment with inflation at 40-year highs accompanied by a broad crypto market crash.”
Robinhood laid off 9% of its workforce in April.
“I want to acknowledge how troubling these kinds of changes are,” Tenev said.
The Robinhood website home screen on a smartphone.
Gaby Jones | Bloomberg | Getty Images
In the press release, Tenev said the company will flatten its organizational structure to give new directors full responsibility for its operations. He also said affected employees would receive an email and a Slack message letting them know if they were being made redundant or still have a job immediately after an all-hands meeting to finalize the move on Thursday discuss.
The company also released its second-quarter earnings report, a day earlier than expected. Here’s how it worked.
- Revenue: Estimated $318 million vs $321 million, according to Refinitiv
- Loss: 34 cents per share vs. 37 cents estimated, according to Refinitiv
Robinhood’s total net revenue of $318 million increased from $299 million in the first quarter, thanks to an increase in revenue from cryptocurrency activities and net interest. However, that revenue number was still well below the $565 million reported in Q2 2021.
The report also showed a drop in monthly active users and assets under custody.
Robinhood has experienced a growth reversal as the retail pandemic seemed to be losing steam.
The company went public in July 2021 at $38 per share, and its stock has soared as high as $85 per share in its first month of trading.
However, the stock quickly declined. Robinhood shares are down 48% year-to-date to close at $9.23 a share on Tuesday.
Shares lost about 2% in after-hours trading.
– Jesse Pound contributed to this report.