Robinhood CEO Vlad Tenev stated in a weblog submit on Tuesday that the “duplicate roles and job capabilities” had been among the many causes the corporate determined to launch the workers.
Robinhood has introduced that 9% of its full-time workers have been let go amid the necessity to downsize after a fast growth over the previous couple of years.
The buying and selling app, based in 2013, says its worker depend grew exponentially via 2020 and the primary half of 2021. As buyer demand elevated because of the pandemic lockdowns, fiscal stimulus and low rates of interest, the agency’s full-time workers jumped from 700 to three,800.
Duplicate roles was an element
Vlad Tenev, the agency’s CEO, stated in a weblog submit on Tuesday that fast development had inevitably led to “duplicate roles and job capabilities, and extra layers and complexity than are optimum.”
It’s these elements that the corporate thought of as they made the tough resolution to let go of the workers, he added.
“We decided that making these reductions to Robinhood’s workers is the proper resolution to enhance effectivity, improve our velocity, and make sure that we’re aware of the altering wants of our clients.”
Robinhood eager on delivering on strategic targets
In accordance with the CEO, the layoffs are a “deliberate step” in the direction of making certain the corporate continues to ship on its strategic targets. It’s additionally meant to see it additional its goals in democratizing finance.
“We are going to proceed to speed up our product momentum via 2022 and can introduce key new merchandise throughout Brokerage, Crypto, and Spending/Saving,” he wrote.
Over the last two years, Robinhood has grown its internet consumer accounts from 5 million to 22 million. Income additionally elevated from roughly $278 million in 2019 to greater than $1.8 billion in 2021. GameStop and Dogecoin have been among the many high two most traded property on the buying and selling app.
The corporate, which went public final yr, reportedly has over $6 billion in money on its stability. The US-based agency will launch its Q1 earnings outcomes on Thursday.
Robinhood shares fell sharply following the announcement, with the corporate’s inventory shedding 3.75% by market’s shut.