Trading app Robinhood is laying off nearly a quarter of its staff due to challenging macroeconomic conditions and a downturn in the cryptocurrency market. Following this decision, the company will have approximately 2,600 employees, a reduction that comes just months after it previously cut nine percent of its workforce—an action CEO Vlad Tenev admitted was insufficient.
This workforce reduction coincides with Robinhood’s second quarter results, which reveal a 44% decline in revenue compared to the same period last year, driven by falling monthly active users and a decrease in assets under custody. Additionally, the company faced a $30 million fine from the New York State Department of Financial Services for serious violations related to anti-money laundering, cybersecurity, and consumer protection in its crypto unit.
In a message to staff, Tenev indicated that the layoffs would primarily affect the operations, marketing, and program management sectors. He took responsibility for the staffing approach, acknowledging it was an ambitious trajectory.
Alongside the layoffs, Robinhood plans to implement a general manager structure to streamline operations, minimize hierarchical layers, and eliminate redundant roles.
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