{"id":65275,"date":"2022-08-03T10:37:58","date_gmt":"2022-08-03T07:37:58","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=65275"},"modified":"2025-09-06T19:02:35","modified_gmt":"2025-09-06T16:02:35","slug":"robinhood-to-cut-workforce-by-about-23","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/robinhood-to-cut-workforce-by-about-23\/","title":{"rendered":"Robinhood to cut workforce by about 23%"},"content":{"rendered":"

Online broker Robinhood will cut its headcount by about 23% amid a deteriorating macroeconomic environment and negative developments in the cryptocurrency market. This, is stated<\/a> in a letter from Robinhood CEO Vlad Tenev.<\/p>\n

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“In these new conditions we are operating with more staff than is necessary. As CEO, I approved and took responsibility for our ambitious staffing trajectory,” said Robinhood’s chief executive.<\/p>\n<\/blockquote>\n

According to him, the layoffs will affect staff across all divisions. The Financial Times reports that about 780 people will be left without work.<\/p>\n

Tenev also announced adjustments to the broker’s organizational structure. The changes are intended to “flatten the hierarchy” and remove “redundant roles and positions”.<\/p>\n

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“Those departing will be offered the opportunity to stay at Robinhood until October 1, 2022, and to continue receiving their usual pay and benefits,” the letter states.<\/p>\n<\/blockquote>\n

The company’s chief executive pledged severance pay, continued payment of insurance contributions, and assistance in finding new employment for those affected.<\/p>\n

On August 2, Robinhood published its second-quarter financial results, which show monthly active users declined by 1.9 million to 14 million. Operating expenses were down 12%, to $610 million.<\/p>\n

Net income stood at $318 million \u2014 up 6% from the first quarter. However, compared with April\u2013June 2021, the figure was down 44%. Loss per share was $0.34.<\/p>\n

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“While the decision to further cut staff was difficult, we believe it is the right move and will enable us to fulfil the mission of democratising finance,” said Tenev.<\/p>\n<\/blockquote>\n

Shares of the online broker closed the trading session on August 2 up 2.1% at $9.23. After-hours quotes slipped to $9.17.<\/p>\n

\"Robinhood
Data: CNBC<\/a>. <\/figcaption><\/figure>\n

In April Robinhood laid off 9% of staff<\/a> amid a 75% tumble in its shares after going public.<\/p>\n

As a result of the crisis, many players in the cryptocurrency industry announced staffing reductions. In particular, BitMEX, Bitso, Mercado Bitcoin, Coinbase, BlockFi<\/a>, and Crypto.com have taken similar steps.<\/p>\n

In July, media reports spoke of a second wave of layoffs<\/a> at the Bitcoin exchange Gemini. The decision to trim headcount was taken at Bitpanda<\/a>, the mining company Compass Mining<\/a> and the NFT marketplace OpenSea<\/a>.<\/p>\n

In August, the New York State Department of Financial Services fined Robinhood’s cryptocurrency unit $30 million for AML violations and cybersecurity policy breaches.<\/p>\n

Follow ForkLog’s Bitcoin news in our Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"

Online broker Robinhood will reduce its workforce by about 23% amid a deteriorating macroeconomic environment and negative developments in the cryptocurrency market. This is stated in a letter from Robinhood CEO Vlad Tenev.<\/p>\n","protected":false},"author":1,"featured_media":65276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,1234],"class_list":["post-65275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-robinhood"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=65275"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65275\/revisions"}],"predecessor-version":[{"id":65277,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65275\/revisions\/65277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/65276"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=65275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=65275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=65275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}