Robinhood Reduces The Workforce By 23%

Robinhood Markets is laying off about 23% of its staff, sending its shares down more than 3% in the long trade.

Retail trading platform Robinhood Markets Inc said Tuesday it will lay off about 23% of its staff, sending its shares down more than 3% in extended trading.

Robinhood CEO Vlad Tenev said in a blog post that the company is also working to change its organizational structure in order to “increase cost discipline.”

Robinhood had already reduced 9% of its workforce in April, saying the company’s growth has led to some duplication of roles and functionalities. Tenev said on Tuesday that those cuts weren’t enough.

“As CEO, I’ve agreed and taken responsibility for our ambitious people journey — and that’s up to me,” Tenev said.

Its easy-to-use interface has made it a huge hit with young home trading investors in cryptocurrency and stocks like GameStop Corp during the COVID-19 pandemic.

However, the company experienced a decline in revenue as its customer base was spooked by high-interest rates and high inflation for decades.

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