Popular trading app Robinhood on Tuesday he said is cutting 780 jobs, or about 23% of full-time staff, amid a slump in trading and continuing losses.
Robinhood said its transaction-based revenue — money it earns when customers trade stocks, options or cryptocurrencies — plunged from a year earlier, when many retail investorsand asset values were high. Trading revenue at the company more than halved to $202 million in the quarter ended June 30, compared with $451 million a year earlier.
Robinhood stock has lost about 50% of its value so far this year. fell 2.3% after closing markets on Tuesday at $9.92.
The cuts mark the second round of layoffs this year for Robinhood, which previously shed 9% of its workforce as the business faces falling shares and” that decimated the value of many cryptocurrencies.
In a suspension On Tuesday, Robinhood CEO Vlad Tenev blamed “inflation at 40-year highs accompanied by a broad crypto market crash” for the company’s financial woes.
“This has further reduced client trading activity and assets under custody,” he wrote on Tuesday.
Tenev said employees across the company will be affected by the layoffs, but that the cuts will focus on Robinhood’s operations, marketing and program management teams.