Robinhood is laying off employees! Does the Crypto community have a say here?

Crypto stock and trading app Robinhood ends April on a tense note.

Retail platform Robinhood Markets Inc. said on Tuesday it was laying off about 9% of its full-time employees, sending its shares down 5% in extended trading. Crypto stock and trading app Robinhood ends April on a tense note. The company, which reports quarterly results later this week, said rapid headcount growth has led to the duplication of some roles and functions. Robinhood’s easy-to-use interface has made it a hit with young investors trading from home in cryptocurrencies and stocks such as GameStop Corp during the COVID-19 pandemic.

Robinhood CFO does not plan to invest a ‘significant amount’ of money in crypto assets

In an official statement, the company’s CEO, Vlad Tenev, said this rapid workforce growth has led to duplicate work roles and functions, and more than optimal layers and complexity. After carefully considering all of these factors, we determined that these Robinhood staff discounts were the right move to improve efficiency, increase our speed and ensure that we meet the changing needs of our customers.

Robinhood’s growth has been helped by young investors trading from home in cryptocurrencies and stocks such as GameStop Corp. and AMC Inc. during the COVID-19 pandemic. The company announced plans in March to extend trading hours for clients for an additional six and a half hours of trading per day.

Vlad Tenev also said that the company will contact each laid-off employee and help them decide on their plans after the layoff, offer them severance packages and help them find new jobs.

The company posted a loss of around 3.75% in the current market and another 5% in extended trading hours. During its growth period from 2019 to 2021, the company grew its workforce from 700 to nearly 3,800.

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Lance B. Holton