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Robinhood CEO Vlad Tenev said the layoffs were focused on its operations, marketing and program management departments.
Another Robinhood staff cut
Robinhood is laying off even more employees.
A Tuesday night suspension from Robinhood CEO Vlad Tenev revealed that the company is cutting its staff by 23%. In explaining the decision, Tenev cited the troubling macroeconomic environment, which has weighed heavily on equity and crypto markets since the beginning of the year.
“We have seen additional deterioration in the macroeconomic environment, with inflation at 40-year highs accompanied by a broad crypto market collapse. This further reduced client transaction activity and assets under custody,” he said, while also clarifying that the layoffs were focused on the company’s operations, marketing and program management divisions.
Tuesday’s announcement isn’t the first time Robinhood has cut staff this year. In April, the company first cut 9% of its 3,800 employees in an effort to cut costs and improve efficiency. After these latest cuts, Robinhood is estimated to have 2,662 employees on its payroll.
Soaring inflation and subsequent rate hikes by the US Federal Reserve crushed high-risk assets in the first half of 2022. High-growth tech stocks and cryptocurrencies, which typically received the highest trading volumes from Robinhood users, fared bad this year. factor that may contribute to the difficulty of application.
Tenev concluded his note by assuring all affected employees that they would be offered the opportunity to remain employed by Robinhood through October 1, 2022, while receiving their regular wages and benefits. He also said staff leaving the company will be offered severance cash, payment of COBRA medical, dental and vision insurance premiums and job search assistance.