Vlad Tenev, the CEO and Co-Founder of Robinhood, recently announced that the company would lay off approximately 23% of its staff following the current adverse macroeconomic conditions, the record inflation in the US, and the meltdown of the cryptocurrency sector. He further said that almost every fourth employee would have to be dismissed:
Because those events have affected customer trading activity and assets under custody. Robinhood’s quarterly results showed that the firm’s revenue for Q2, 2022 was $318 million vs. $321 million estimated. The figures are also far from the $565 million reached in Q2 last year.
Robinhood was one of the crypto companies that laid off some of its staff this year because of the bear market and its consequences. In April, the firm retrenched 9% of its full-time employees.
Tenev said, “I just announced that we are reducing our headcount by approximately 23%. While employees from all functions will be impacted, the changes are particularly concentrated in our operations, marketing, and program management functions.”
The CEO stated that each retrenched staff would remain employed till October 1, 2022. After which, they will receive regular pay and benefits, cash severance, dental and vision insurance premiums, payment of COBRA medical, and assistance when looking for other job opportunities.
“We know this news is tough for all Robinhoodies, and we are also offering wellness support to those who would like it,” Tenev added.