Retail brokerage company Robinhood is reducing again staffing ranges, bringing up “replica roles and process purposes” after speedy enlargement ultimate 12 months.
CEO Vlad Tenev made the announcement in a weblog publish on Tuesday afternoon. Stocks fell greater than 5% in prolonged buying and selling.
The transfer will have an effect on about 9% of full-time staff. Robinhood reported 3,800 full-time staff as of Dec. 31. The corporate didn’t straight away reply to a request from CNBC concerning the selection of people who find themselves being let cross.
“We decided that making those discounts to Robinhood’s workforce is the precise determination to support potency, building up our pace, and make sure that we’re attentive to the converting wishes of our consumers,” Tenev wrote.
“Whilst the verdict to adopt this motion wasn’t simple, this is a planned step to make sure we’re ready to proceed handing over on our strategic targets and furthering our venture to democratize finance,” he added.
Robinhood is scheduled to unencumber its first-quarter effects after the bell on Thursday. The weblog publish did not point out the ones monetary effects rather than pronouncing that the corporate has greater than $6 billion in money on its steadiness sheet.
The corporate in the past reported having $6.25 billion in money and money equivalents on its steadiness sheet on the finish of December.
Going ahead, the corporate will evaluate worker enlargement plans and “proceed to prioritize inner alternatives for automation and operational potency,” Tenev wrote.
Robinhood rose to prominence in early 2021 as a key participant within the GameStop saga, the place retail traders bid up so-called meme shares.
The brokerage noticed a surge of recent consumers and money, and entered the general public markets thru an IPO in July. Alternatively, the inventory received little traction and has traded under its IPO value of $38 in line with proportion for far of its lifestyles. Stocks closed at $10 on Tuesday.
The corporate shed per thirty days energetic customers all over the fourth quarter, and its first-quarter effects will face difficult comparisons to the GameStop mania of the primary quarter of 2021.
