Stock trading app Robinhood lays off 713 employees, CEO says ‘it’s up to me’

Silicon Valley based online trading app Robin Hood has laid off 23 percent of its workforce, just three months after the fintech platform cut its workforce by 9 percent amid global economic turmoil.



A 23 percent reduction would mean laying off about 713 employees, leaving nearly 2,400 employees at the company, TechCrunch reports.

In a blog post, Robinhood CEO and co-founder Vlad Tenev said that “employees from all positions would be affected” and that the layoffs “are mainly concentrated in the company’s operations, marketing and program management functions.

“As part of a broader corporate reorganization to a General Manager (GM) structure, I just announced that we are reducing our workforce by approximately 23 percent,” Tenev said late Tuesday.

“In this new environment, we are working with more staff than necessary. As CEO, I have approved our ambitious staffing trajectory and taken responsibility – this is up to me,” Tenev said late Tuesday.

Tenev also said his previous round of layoffs “didn’t go far enough”.

Robinhood also released its second quarter results, reporting net sales of $318 million on a net loss of $295 million.

The Wall Street Journal said Robinhood was fined $30 million by a New York financial regulator, specifically on its cryptocurrency trading arm.

Tenev said the company has seen a further deterioration in the macro environment since the previous 9 percent layoffs, with 40-year inflation and a broad crypto market crash.

“This has further reduced the trading activity of clients and assets under custody,” he added.

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