Saturday, August 20, 2022

Technology

Fintech platform Robinhood fires 713 employees, CEO says 'it's on me'

IANS | August 03, 2022 10:30 AM

SAN FRANCISCO: Silicon Valley-based online trading app Robinhood has sacked 23 per cent of its workforce, just three months after the fintech platform reduced its headcount by 9 per cent amid the global economic turmoil.

A 23 per cent reduction would amount to about 713 employees being laid off, leaving nearly 2, 400 employees at the company, reports TechCrunch.

In a blogpost, Robinhood CEO and co-founder Vlad Tenev said that "employees from all functions would be impacted" and the layoffs are "particularly concentrated in the company's operations, marketing and programme management functions.

"As part of a broader company reorganisation into a General Manager (GM) structure, I just announced that we are reducing our headcount by approximately 23 per cent, " Tenev said late on Tuesday.

"In this new environment, we are operating with more staffing than appropriate. As CEO, I approved and took responsibility for our ambitious staffing trajectory -- this is on me, " Tenev said late on Tuesday.

Tenev also said that its earlier round of layoffs "did not go far enough."

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

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

Tenev said that since the earlier 9 per cent layoff, the company has seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.

"This has further reduced customer trading activity and assets under custody, " he added.

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