Robinhood cuts about 23% of jobs and releases second-quarter earnings report

Robin Hood This was announced on Tuesday by CEO Vlad Tenev. Press release that the company will cut its headcount by about 23%.

The layoffs will primarily affect operations, marketing and program management. In the post, Tenev blamed “a deteriorating macroeconomic environment with inflation at a 40-year high accompanied by a widespread crypto market crash.”

Previously, Robinhood laid off 9% of its workforce. in April.

“I want to acknowledge how disturbing these changes are,” Tenev said.

Home screen of the Robinhood website on a smartphone.

Gabby Jones | Bloomberg | Getty Images

In a press release, Tenev said the company will streamline its organizational structure to give new CEOs broad responsibility for its business. He also said that affected employees will receive an email and a Slack message telling them if they’ve been fired or still have a job right after Thursday’s general meeting to discuss the move.

The company also released its second-quarter earnings report a day earlier than expected. That’s how it was.

  • Income: $318 million vs. The cost is estimated at $321 million, according to Refinitiv.
  • The loss: 34 cents per share vs. Refinitiv estimates 37 cents.

Robinhood’s total net income of $318 million is up from $299 million in the first quarter, driven by increased crypto and net interest revenue. However, that revenue figure was still well below the $565 million reported in the second quarter of 2021.

The report also showed a decrease in the number of monthly active users and the number of assets in custody.

The company is facing reverse growth as the pandemic retail boom appears to have abated.

The company went public in July 2021 at $38/share, with shares jumping to $85/share in its first month of trading.

However, the shares quickly deflated. Robinhood shares are down 48% year-to-date to close at $9.23 a share on Tuesday.

Shares fell about 2% in after-hours trading.

Jesse Pound contributed to this report.