Robinhood is reducing its staff numbers for the second time this year. The firm announced on Tuesday that it would reduce its employment by 23%. Every area of Robinhood's business will be affected by the changes, but the company's "operations, marketing, and program management departments" will be the primary priority, according to CEO Vlad Tenev.
Tenev ascribed the decision to a deteriorating macroeconomic environment, claiming record inflation and the Bitcoin crash as the major causes of the business's recent problems. He also confessed that the business overhired the previous year under the idea that retail investors would continue to invest in stocks and cryptocurrency at the same quantity as they had done in the early stages of the pandemic. Robinhood had about 3,800 workers before reducing nine percent of them from their pay in April. "This is on me," he added, "as CEO, I approved and took responsibility for our ambitious staffing trajectory."
Additionally, Robinhood released its Q2 earnings on Tuesday, one day early. After revenue dropped by 44% year over year to $318 million, the company reported a net loss of $295 million.
Tenev announced that Robinhood would change to an organizational structure in which general managers would have broad authority over the company's business. He asserted that the modification will flatten hierarchies, lessen cross-functional interdependence, and remove unnecessary roles and duties. Tenev stated that Robinhood would email and Slack the affected staff. They are allowed to stay with the business until October 1st, 2022.