Robinhood is laying off 9% of its staff 2022-04-26 23:11:33

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retail trading platform Robinhood Markets Inc.which went through a period of hyper-growth boosted by the meme stock craze during covid-19 pandemicsuffers from a decline.

The company is laying off about 9% of its value full time employees.

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The news sent shares down 5% in extended trading.

The total number of company employees reached 3,800 at the end of 2021.

Robinhood CEO Vlad Tenev announced in a blog post after the company meeting.

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“This rapid headcount growth has led to some dual job roles and positions, and more layers and complexity than is ideal,” Tenney said. “After carefully considering all of these factors, we have determined that making these cuts to Robinhood employees is the right decision to improve efficiency, increase our speed and ensure that we respond to the changing needs of our customers.”

Robinhood CEO Vlad Tenev. (Photo by Ian Tuttle/Getty Images)

Robinhood’s growth has been helped by young home-trading investors 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 by an additional six and a half hours of trading per day.

Robinhood stock increases with increased trading hours

“We will continue to accelerate our product momentum into 2022 and introduce major new products across brokerage, cryptocurrency, and spending/savings,” Tenev said.

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Hood Robinhood Markets Company 10.00 -0.39 -3.75%

The company’s revenue rose 14% in the fourth quarter of last year, less than half its growth rate in the summer months.

Robinhood also warned that revenue in the current quarter could fall sharply from the previous year.

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The company will announce its quarterly results this week.

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