Robinhood website home screen on smartphone.
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The layoffs will be primarily in operations, marketing and program management. In the release, Tenev blamed “deterioration in the macro environment, with inflation at 40-year highs accompanied by a broad crash in the crypto market.”
Robinhood had previously laid off 9% of its workforce in April.
“I want to admit how exciting these kinds of changes are,” Tenev said.
In the release, Tenev said the company would flatten its organizational structure to give new general managers broad responsibility for its businesses. He added that affected employees would receive an email and a message from Slack letting them know if they were being let go or still had a job, right after a meeting was held to discuss the move on Thursday .
The company also dropped its second quarter earnings report, a day earlier than expected. This is how he did it.
- Income: $318 million vs an estimated $321 million, according to Refinitiv
- Loss: 34 cents per share vs. 37 cents estimated, according to Refinitiv
Robinhood’s total net income of $318 million was up from $299 million in the first quarter, thanks to an increase in income from cryptocurrency activities. However, that revenue number was still well below the $565 million reported in the second quarter of 2021.
The report also showed a decline in monthly active users and assets in custody.
The company has seen growth reverse as the pandemic boom in the retail trade seemed to have lost steam.
The company went public in July 2021 at $38 per share, and its stock jumped as high as $85 per share in its first month of trading.
However, the stock quickly lost steam. Robinhood shares are down 48% year to date and closed at $9.23 per share on Tuesday.
Shares were down about 4% in after-hours trading.
This is the latest news. Check back for updates.