Robinhood cutting about 23% of tasks, releases 2nd quarter profits

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Robinhood cutting about 23% of jobs, releases second quarter earnings

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The Robinhood site house screen on a mobile phone.

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Robinhood CEO Vlad Tenev stated Tuesday in a news release that the business will minimize its headcount by around 23%.

The layoffs will be mainly in operations, marketing and program management. In the release, Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”

Robinhood had actually formerly laid off 9% of its labor force in April.

“I want to acknowledge how unsettling these types of changes are,” Tenev stated.

In the release, Tenev stated the business would flatten its organizational structure to provide brand-new basic supervisors broad obligation for its companies. He likewise stated that impacted staff members would get an e-mail and a Slack message letting them understand if they were being released or still worked, instantly after an all-hands conference to talk about the carry on Thursday.

The business likewise dropped its profits report for the 2nd quarter, one day earlier than anticipated. Here’s how it did.

  • Revenue: $318 million vs. $321 million approximated, according to Refinitiv
  • Loss: 34 cents per share vs. 37 cents approximated, according to Refinitiv

Robinhood’s overall net earnings of $318 million was up from $299 million in the very first quarter, thanks to a boost in earnings from cryptocurrency activities and net interest. However, that earnings number was still well listed below the $565 million reported in the 2nd quarter of 2021.

The report likewise revealed a decrease in regular monthly active users and possessions under custody.

The business has actually seen development reverse as the pandemic boom in retail trading appeared to slow.

The business went public in July 2021 at $38 per share, and its stock leapt as high as $85 per share in its very first month of trading.

However, the stock rapidly slowed. Shares of Robinhood are down 48% year to date and closed at $9.23 per share on Tuesday.

Shares were down about 2% in after-hours trading.

Jesse Pound added to this report.