Robinhood is letting go of nearly a quarter of its staff, CEO Vlad Tenev said in a message posted on the company’s blog.
“As part of a broader reorganization of the company into a General Manager (GM) structure, I have just announced that we are reducing our staff by approximately 23%,” Tenev wrote. “While employees from all functions will be affected, the changes are particularly focused on our operations, marketing and program management.”
Robinhood chief product officer Aparna Chennapragada is also stepping down as part of the restructuring, according to filing with the Capital Market Commission, although she will “remain employed in an advisory role to the CEO or his representative until January 2, 2023.” Chennapragada joined the company by Google in March 2021.
The announcements came as Robinhood released its second-quarter 2022 earnings a day ahead of schedule, reporting total revenue of $318 million during the three months, down 44 percent from the same period in 2021.
In April, Robinhood said so planned to cut 9% of full-time staff, but “that didn’t go far enough,” Tenev said. The company had been staffed under the assumption that increased trading following things like the GameStonk phenomenon and bullish cryptocurrency markets would continue into 2022, but it has faced headwinds from inflation and the so-called “crypto winter” affecting other companies. Those affected by the cuts will be able to stay at Robinhood until Oct. 1 at their regular salary and benefits along with a severance package, Tenev says.
Many companies have been forced to lay off or lay off employees in recent weeks. Tesla laid off nearly 200 Autopilot employees while Shopify laid off 10 percent of its workforce.
Update August 2, 5:13 PM ET: added the news that Robinhood’s chief product officer is also stepping down.