Online brokerage Robinhood plans to lay off nearly a quarter of its staff, citing the continued deterioration of the macro environment and the widespread collapse of the cryptocurrency market, Coin Telegraph reported.
The bad news came in an August 2 blog post from co-founder and CEO Vlad Tenev, the same day it released tepid second-quarter financial results, while the New York Department of Financial Services announced a $30 million fine to the company's crypto branch over allegations of anti-violence. Money laundering, cyber security and consumer protection violations.
Tenev wrote that the layoffs will affect all jobs in the company, particularly operations, marketing and program management, with about 23% of employees being laid off. The Financial Times estimated the number of affected employees at 780.
Robinhood laid off 9% of its staff earlier this year, but Teneff said the cuts weren't enough, citing economic conditions and the crypto market crash as factors in the move.
Additionally, the company assumed line that the increased participation seen during the onset of the COVID-19 pandemic would continue. Tenev wrote: As CEO, I have agreed and taken responsibility for our ambitious hiring path — and that rests with me.
The company released its quarterly financial results a day ahead of schedule. The results were disappointing, with $318 million in net revenue, down 44% year over year, despite up 6% from last quarter.
Net loss for the period was $295 million, down from a net loss of $502 million in the second quarter of 2021.
The number of monthly active users decreased by 1.9 million from the fourth quarter to 14.0 million in June, and assets under custody were down 31% to $64.2 billion in that time.
However, revenue from cryptocurrencies increased 7% on a quarterly basis to $58 million.
