Robinhood cuts about 9% of full-time employees

Retail brokerage firm Robinhood is cutting back on staffing levels, citing “duplicate roles and job functions” following rapid expansion last year.

This was announced by CEO Vlad Tenev in a blog post on Tuesday afternoon. Shares fell more than 4% in extended trading.

The move will affect about 9% of full-time employees. Robinhood reported 3,800 full-time employees per. December 31, so 9% would be around 340 people or more, depending on the latest employment trends.

“We decided that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our speed and ensure that we are responsive to the changing needs of our customers,” Tenev wrote.

“While the decision to implement this action was not an easy one, it is a conscious step to ensure that we are able to continue to deliver on our strategic goals and advance our mission to democratize finance,” he added.

Robinhood is scheduled to release its first-quarter results after Thursday. The blog post did not mention these financial results other than to say that the company has more than $ 6 billion in cash on the balance sheet.

Going forward, the company will review employee growth plans and “continue to prioritize internal opportunities for automation and operational efficiency,” Tenev wrote.

Robinhood became prominent in early 2021 as a key player in the GameStop saga, where retail investors are offering so-called meme shares.

Mæglerhuset experienced a wave of new customers and cash and entered the public markets through a stock exchange listing in July. However, the stock gained some traction and has traded below $ 38 per share for much of its existence. The stock closed at $ 10 on Tuesday.

The company lost monthly active users during the fourth quarter, and its first-quarter results will face tough comparisons to the GameStop mania of the first quarter of 2021.

This is breaking news. Please come back for updates.

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