Agencies-Gaza post
Robinhood lays off a large number of her employees. What’s the story?
US financial services firm Robinhood announced significant cuts in staff on Tuesday, citing the cryptocurrency market collapse among the reasons.
Vlad Tenev, the company’s chief executive, said in a blog post that the online intermediate app, which promotes itself as an investment platform for the average man, would reduce its staff by about 23%.
Tenev added that the company-wide cuts will particularly affect Robinhood’s operations, marketing, and roles in software management.
Initially, KOTC did not provide further details on the number of expected staff exclusion cases. Some 780 employees have already been laid off.
In April, Tenev had already announced a 9% cut in the company’s workforce, but said Tuesday that “didn’t go far enough.”
Inflation had risen to 40-year highs accompanied by a widespread collapse in the cryptocurrency market.
“In this new environment, we are working with more staff than is appropriate,” he said.
Robinhood primarily attracts small investors through its commission-free model of trading stocks and cryptocurrencies. However, the company has been struggling since the end of the stock market boom caused by the COVID-19 pandemic.
The company was also fined $30 million on Tuesday by the New York State Department of Financial Services for “significant failures in the areas of banking secrecy law and anti-money laundering and cybersecurity obligations.”
