Popular trading app Robinhood on Tuesday Told It is cutting 780 employees, or about 23% of its full-time workforce, amid declining transactions and ongoing losses.
Robinhood said its transaction-based revenue – the money that customers make when they trade stocks, options or cryptocurrencies – fell from a year ago, when many retail investors Pile on “Meme Stock” And asset values were high. Revenue from transactions at the company more than doubled to $202 million in the quarter ended June 30, compared to $451 million a year ago.
Robinhood’s stock has dropped nearly 50% of its value so far this year; It fell 2.3% to $9.92 after the market closed on Tuesday.
The cuts mark a second round of layoffs this year for Robinhood, which previously shed 9% of its workers, as its business slid into equity and a “crypto winter“Which eroded the value of many cryptocurrencies.
one in blog post On Tuesday, Robinhood CEO Vlad Tenev blamed “inflation at a 40-year high and a widespread crypto market crash” for the company’s financial woes.
“This has reduced customer business activity and custodial assets,” he wrote on Tuesday.
Tenev said employees across the company will be affected by the layoffs, but the cuts will be focused across Robinhood’s operations, marketing and program management groups.
