Robinhood To Cut , 23% of Its Workforce.
CNN reports that Robinhood made the announcement on Aug.
2.
The layoffs come after the company let 9% of its workforce go in April.
The latest round of cuts will affect 780 employees.
CNN reports that in its Q2 earnings report, Robinhood had a 44% revenue drop compared to a year ago.
The brokerage's monthly active users dropped by over 7 million in June.
Robinhood CEO Vlad Tenev said the company staffed for an ongoing crypto boom, .
But virtual currencies have been on a downward trend.
.
Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022, Vlad Tenev, Robinhood CEO, via message to employees.
In this new environment, we are operating with more staffing than appropriate, Vlad Tenev, Robinhood CEO, via message to employees.
As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me, Vlad Tenev, Robinhood CEO, via message to employees.
Also on Aug.
2, Robinhood was fined $30 million by the New York State Department of Financial Services.
As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance – a failure that resulted in significant violations of the department’s anti-money laundering and cybersecurity regulations, Adrienne A.
Harris, the department’s superintendent, via statement
