The announcement followed closely on the heels of cuts in April, when Robinhood laid off 340 workers, or about 9% of its employees at the time. CEO Vlad Tenev cited further worsening of the economy, including inflation and the crash of the crypto market, which has "reduced customer trading activity and assets under custody"
Baiju Bhatt and Vlad Tenev pose in Times Square on Robinhood Markets IPO Listing Day on July 29, 2021 in New York City; Image: Cindy Ord / GETTY IMAGES NORTH AMERICA / Getty Images via AFP
Robinhood, the trading app that popularized one-click trading and helped fuel last year’s meme stock frenzy, said Tuesday that it was laying off about 23% of its workforce.
Vlad Tenev, the chief executive of Robinhood, said in a blog post that the layoffs would affect employees across the company, especially those in operations, marketing and program management roles.
Robinhood declined to comment on the layoffs.
The announcement followed closely on the heels of cuts in April, when Robinhood laid off 340 workers, or about 9% of its employees at the time. Since then, Tenev wrote, further worsening of the economy, including inflation and the crash of the crypto market, has “reduced customer trading activity and assets under custody.” The price of bitcoin has fallen by more than half this year, to about $23,000 per coin. The cryptocurrency rose as high as $66,000 in late 2021.
The layoffs come as part of a wave of job cuts at tech companies, including some cryptocurrency firms. In June, cryptocurrency exchanges including Coinbase and Gemini announced that they were laying off employees. Last week, Shopify, an online marketplace, announced it was cutting 10% of its 10,000 employees.
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