Robinhood Cuts its Workforce by 23% because of ‘deterioration of the macro setting’

by Cryptospacey

Robinhood introduced it’s decreasing its workers by 23% (round 780 staff). Earlier this 12 months Robinhood laid off 340 staff, which was 9% of its workforce. Staff in operations, advertising and programme administration positions will likely be principally affected by the cuts, the anti-money laundering division will stay intact.

Robinhood CEO and Co-Founder, Vlad Tenev wrote the next in a weblog put up:

“Let me clarify how we arrived at this choice. Earlier this 12 months, I introduced that we’d be letting go of 9% of our workforce and specializing in better price self-discipline all through the group.

“This didn’t go far sufficient. Since that point, we’ve got seen further deterioration of the macro setting, with inflation at 40-year highs accompanied by a broad crypto market crash. This has additional diminished buyer buying and selling exercise and belongings beneath custody.”

Robinhood’s income dropped to $318 million in comparison with $565 million(-44%) in the identical quarter in 2021.

FTX Acqusition?

There are speculations that FTX is because of purchase Robinhood. Though Bankman-Fried (which is holding a 7.6% stake in Robinhood) has denied FTX is intending to amass Robinhood, workers discount typically takes place throughout acquisitions or partnerhsips.

CoinFLEX, for instance, just lately diminished its workers however made it clear that the choice was primarily based on potential acquisition or partnership:

“After we have an effect on the plans across the CoinFLEX Composite distributions (inclusive of rvUSD, fairness and FLEX Coin), we wish to be ready, cost-wise, to guarantee that we’ve got each probability to be a profitable enterprise which begins by being a leaner enterprise staffing-wise.

“Because of this we, sadly, needed to let go of a big variety of the CoinFLEX group throughout all departments and geographies. The workers cuts and non-staff prices that we’ve got made will scale back our price base by roughly 50-60%.

“Nearly all of the group that stay are centered on product and expertise, which stays the core of our enterprise. We are going to monitor prices to make sure we function as effectively as attainable and scale as volumes come again.

“The intention is to stay right-sized for any entity contemplating a possible acquisition of or partnership alternative with CoinFLEX.”

supply: CoinFLEX

Robinhood introduced it’s decreasing its workers by 23% (round 780 staff). Earlier this 12 months Robinhood laid off 340 staff, which was 9% of its workforce. Staff in operations, advertising and programme administration positions will likely be principally affected by the cuts, the anti-money laundering division will stay intact.

Robinhood CEO and Co-Founder, Vlad Tenev wrote the next in a weblog put up:

“Let me clarify how we arrived at this choice. Earlier this 12 months, I introduced that we’d be letting go of 9% of our workforce and specializing in better price self-discipline all through the group.

“This didn’t go far sufficient. Since that point, we’ve got seen further deterioration of the macro setting, with inflation at 40-year highs accompanied by a broad crypto market crash. This has additional diminished buyer buying and selling exercise and belongings beneath custody.”

Robinhood’s income dropped to $318 million in comparison with $565 million(-44%) in the identical quarter in 2021.

FTX Acqusition?

There are speculations that FTX is because of purchase Robinhood. Though Bankman-Fried (which is holding a 7.6% stake in Robinhood) has denied FTX is intending to amass Robinhood, workers discount typically takes place throughout acquisitions or partnerhsips.

CoinFLEX, for instance, just lately diminished its workers however made it clear that the choice was primarily based on potential acquisition or partnership:

“After we have an effect on the plans across the CoinFLEX Composite distributions (inclusive of rvUSD, fairness and FLEX Coin), we wish to be ready, cost-wise, to guarantee that we’ve got each probability to be a profitable enterprise which begins by being a leaner enterprise staffing-wise.

“Because of this we, sadly, needed to let go of a big variety of the CoinFLEX group throughout all departments and geographies. The workers cuts and non-staff prices that we’ve got made will scale back our price base by roughly 50-60%.

“Nearly all of the group that stay are centered on product and expertise, which stays the core of our enterprise. We are going to monitor prices to make sure we function as effectively as attainable and scale as volumes come again.

“The intention is to stay right-sized for any entity contemplating a possible acquisition of or partnership alternative with CoinFLEX.”

supply: CoinFLEX

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