Robinhood announces layoffs ahead of first-quarter earnings release


Brokerage app company Robinhood has laid off "approximately 9%" of its global staff, according to a blog post from the firm's CEO Vlad Tenev.

In the post, Tenev cited a period of significant headcount growth that resulted in "some duplicate roles and job functions, and more layers and complexity than are optimal."

"After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers," he wrote.

The move comes ahead of Robinhood's Q1 2022 earnings release on Thursday. In January, when the firm reported its Q4 2021 earnings, Robinhood predicted a decline in total net revenues compared to 2021's first quarter.

"For the first quarter of 2022, Robinhood anticipates that total net revenues will be less than $340 million, which assumes some incremental improvement in trading volumes versus what we have seen so far," Robinhood said at the time. "At the top end, this implies a year-over-year revenue decline of 35% compared to the first quarter of 2021, during which we saw outsized revenue performance due to heightened trading activity, particularly relating to certain meme-stocks."

Tenev said in Tuesday's blog post that Robinhood still plans to "accelerate our product momentum through 2022 and will introduce key new products across Brokerage, Crypto, and Spending/Saving."

Earlier this month, Robinhood announced its plan to acquire crypto startup Ziglu, and at the Bitcoin 2022 event in Miami announced the broader rollout of wallet services and a plan to support Lightning network payments.

Christine Brown, Robinhood Crypto's chief operating officer for crypto, departed the brokerage app company in late March. 

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC