Robinhood Markets Inc. HOOD CEO Vlad Tenev announced Tuesday in a press release the company is “reducing our headcount by approximately 23%.”
Employees from throughout the company will be affected, with the changes “particularly concentrated in our operations, marketing and program management functions.”
This comes after a reduction of about 9% of the workforce earlier in the year, which Tenev said “did not go far enough.”
Tenev noted the deterioration of the macro environment, inflation and crypto market crash, along with reduced customer trading activity and assets invested through Robinhood as some of the reasons for the most recent staff reductions.
Employees who are let go will be offered the opportunity to stay with the company through Oct. 1, 2022, with regular pay and benefits, as well as receive cash severance, payment of COBRA medical, dental and vision insurance premiums (though no time period was mentioned in the press release) and job search assistance.
In total, both layoffs in 2022 have cut more than 1,000 jobs from Robinhood, according to a Wall Street Journal article.
Related Link: How Does Robinhood Make Money?
Crypto Fine: Robinhood received a $30-million fine Tuesday from the New York State Department of Financial Services for “significant anti-money laundering, cybersecurity and customer protection violations” due to the practices of the company’s crypto division.
How Were Robinhood’s Q2 Earnings? Robinhood reported its second-quarter earnings results after the market closed Tuesday.
Robinhood beat estimated earnings by 8.11%, reporting an EPS loss of 34 cents per share versus an estimated loss of 37 cents per share.
Revenue was down $247.33 million from the same period last year, according to Benzinga Pro.
This was in contrast to the previous quarter when the company missed on EPS by 9 cents, which was followed by a 2.82% drop in the share price the next day.
Robinhood’s second-quarter monthly active users totaled 14 million, down 1.9 million year-over-year, and assets under custody are $64.2 billion, down 31% sequentially.
HOOD Price Action: Robinhood shares were down 1.41% at $9.10 in after-hours trading Tuesday.
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