Robinhood Decides to Lay Off 23% of Employees

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. online securities trading platform Robinhood announced on the 2nd (local time) that it will lay off 23% of its employees.

In a letter from CEO Vlad Tenev on the same day, Robinhood stated, "As part of a broad company restructuring, we will reduce our workforce by about 23%," adding, "Employees across all departments will be affected, but the reductions will be concentrated particularly in operations, marketing, and program management."

Earlier this year, Robinhood announced it would lay off 9% of its full-time staff and focus on strengthening organizational costs due to the sluggish U.S. stock market. CEO Tenev said, "Following that, the macro environment further deteriorated with a sharp decline in the cryptocurrency market and rising inflation, leading to this (additional layoff) decision," and acknowledged, "We recognize how unsettling these changes are."

The Wall Street Journal (WSJ) estimated that more than 1,000 employees will leave the company due to this decision. As of the end of March, Robinhood's active users numbered about 16 million, a 25% decrease from last year's peak. During this period, revenue also halved. Robinhood's stock price has fallen about 50% so far this year.

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