Robinhood is reducing staff by "approximately 9%" as the company's rapid headcount growth has led to duplicate roles and complexity, Robinhood CEO Vlad Tenev said in a blog post on Tuesday.
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Tenev added that these reductions are the "right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers." According to reports, the change may affect approximately 300 people. Despite the layoffs, Robinhood will continue to expand product growth through 2022 and will roll out new products across brokerage, crypto, and so on.
"We will retain and continue to hire exceptional talent in key roles and provide additional learning and career growth opportunities for our employees. And of course, our international expansion efforts will continue to accelerate from here," Tenev added.
Tenev says the company will provide help around separation packages, healthcare, and job search assistance, on an individual basis. Amid the news, Robinhood shares fell by almost 4% to $9.6. The company's market capitalization decreased to $8.3 billion.
Earlier this month, Robinhood announced plans to acquire startup Ziglu, a British electronic-money firm and cryptocurrency trading service, for an undisclosed price. According to the fintech company, both companies will continue to work separately, as the acquisition agreement has yet to be approved by the relevant regulator.
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