- Due to a decline in business, Robinhood has stated that it would have to lay off close to a quarter of its workforce in the upcoming weeks. According to the platform’s official declaration, the company’s financial situation has proceeded to drastically worsen in the midst of the global market slump. The company blogged about the change at the same time it revealed its second-quarter numbers.
Robinhood is about to sack 700 employees
Due to numerous infractions, including laundering money and other activities, the trading system is also in heated air. With this, the New York Financial Services division hit Robinhood with a $30 million punishment. Vlad Tenev, an executive for the network, claims that the firm would be negatively impacted by the layoffs since numerous divisions inside the company will be impacted. He mentioned the operations and promotional teams in his comments as two of the select few that will lose a lot of their employees.
Analyst predictions state that around 700 present Robinhood employees will lose their jobs soon. Reports, however, also suggested that the individuals would be permitted to continue working as personnel until October 1. Throughout the time, they would get their salary and all other benefits.
Already reduced 9% of its workforce
Although Robinhood let off around 9% of its workforce at the start of this year, the CEO stated in this statement that the situation was still difficult due to the remaining workforce. He used the situation of the broader economy as discouragement in his remark along with the market’s collapse. He saw that as a result of these problems, there were much fewer traders using the site. The CEO also mentioned that Robinhood predicted widespread customer support similar to that seen at the height of the coronavirus outbreak. But he decides to take the fall for the recent staff cuts and layoffs, which have been commonplace since the new year.
The firm has experienced a dramatic decline in sales, which has decreased by as much as 44% year over year. The platform’s assets decreased by 31% while the number of users plummeted dramatically to 14 million per month. However, the company’s shares experienced a tremendous increase after another crypto platform head Bankman Fried purchased a holding.