Robinhood, 9% of Full-Time Staff Laid Off... Stock Price Declines in After-Hours Trading

by Cho Seulkina

Published 27 Apr.2022 08:53(KST)

[Asia Economy New York=Special Correspondent Joselgina] Robinhood, a U.S. stock trading platform, announced on the 26th (local time) that it is laying off 9% of its full-time employees and reducing overlapping roles. This decision comes less than a year after its listing on Nasdaq.

According to The Wall Street Journal (WSJ), Robinhood CEO Vlad Tenev stated, "Due to rapid staff growth, some overlapping roles and job functions have occurred." He explained that this decision is the best measure to improve work efficiency and respond to customer demands.

Robinhood experienced rapid growth fueled by the popularity of so-called memestocks and cryptocurrency investments trending on internet communities such as GameStop immediately after COVID-19. During this period, Robinhood's staff increased from 700 to 3,800 employees.

On this day, Robinhood closed at $10, down 3.75% from the previous session on the New York Stock Exchange. Following the layoff news, it recorded a decline of 2-3% in after-hours trading. Robinhood is scheduled to release its first-quarter earnings on the 28th.