Robinhood sacks 23% of workforce
Back again with a small update to the stock-trading company, Robinhood, who has surely seen better days. I did not expect to be writing again about Robinhood on the same day, that's why life is surely a rollercoaster.
Today, August 2nd, Robinhood Co-Founder and CEO Vladimir Tenev posted on the official company blog today, detailing the company's current situation and future restructuring. He saved no time delivering the bad news to the "Hoodies" that almost a quarter, approximately 23%, of the staff will be let go. Vladimir explained how they find themselves in the current situation, attributing the drastic decisions to record-high inflation and the cryptocurrency market crash. Operating on assumptions that the crypto and stock markets would keep firing on all cylinders, Robinhood over-staffed their offices, and are now having to clean house after posting a net loss of $295 million.
Surprisingly, this is the second wave of workforce reduction this year for the Robinhood; having announced cuts totaling 9% in April. It seems that departing employees will be offered the option to remain employed through October 1, 2022; a small consolation. I sympathize with the employees who did their job exactly as asked but have to pay the price for the decisions made by their CEO and executives.
"As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me." - Vladimir Tenev, Co-Founder and CEO
See ya!
Resources
