Retail brokerage company Robinhood is cutting down staffing levels, mentioning “duplicate roles and job functions” after quick growth in 2015.
CEO Vlad Tenev made the statement in a post on Tuesday afternoon. Shares fell more than 5% in prolonged trading.
The relocation will impact about 9% of full-time workers. Robinhood reported 3,800 full-time workers sinceDec 31. The business decreased to provide more information on the precise variety of workers being released.
“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,” Tenev composed.
“While the decision to undertake this action wasn’t easy, it is a deliberate step to ensure we are able to continue delivering on our strategic goals and furthering our mission to democratize finance,” he included.
Robinhood is arranged to launch its first-quarter outcomes after the bell onThursday The post didn’t discuss those monetary outcomes aside from stating that the business has more than $6 billion in money on its balance sheet.
The business formerly reported having $6.25 billion in money and money equivalents on its balance sheet at the end of December.
Going forward, the business will examine staff member development strategies and “continue to prioritize internal opportunities for automation and operational efficiency,” Tenev composed.
Robinhood increased to prominence in early 2021 as an essential gamer in the GameStop legend, where retail financiers bid up so-called meme stocks.
The brokerage saw a rise of brand-new consumers and money, and got in the general public markets through an IPO inJuly However, the stock acquired little traction and has actually traded listed below its IPO rate of $38 per share for much of its presence. Shares closed at $10 on Tuesday.
The business shed regular monthly active users throughout the 4th quarter, and its first-quarter outcomes will deal with hard contrasts to the GameStop mania of the very first quarter of 2021.