Retail trading platform Robinhood Markets said Tuesday it was laying off about 23% of its employees, cutting its shares by more than 3% during prolonged trading.
The company is also changing its organizational structure to “encourage greater cost discipline,” Robinhood Chief Executive Officer Vlad Tenev said in a: blog post.
Robinhood had already cut 9% of its workforce in April, as the company’s growth had led to some duplicate roles and positions. Tenev said on Tuesday that those cuts don’t go far enough.
“As CEO, I have approved our ambitious personnel journey and taken responsibility – this is up to me,” Tenev said.
Robinhood’s easy-to-use interface made it a hit with young investors trading cryptocurrencies and stocks like GameStop from home during the COVID-19 pandemic.
The company is also changing its organizational structure to “encourage greater cost discipline,” CEO Vlad Tenev said.REUTERS
However, the company recorded sales declines as its customer base was rocked by rising interest rates and decades-long inflation.
Robinhood announced its second quarter results a day earlier than expected. It posted a 6% sequential revenue increase to $318 million, despite a market sell-off in stocks and cryptocurrencies. But sales were 44% lower than a year earlier.
Robinhood announced last quarter that it was changing the way it delivered revenue forecasts by providing “certain statistical and operating results for limited purposes” on a monthly basis.