Popular retail buying and selling platform Robinhood has fired 9% of its workforce amid a firesale of its inventory that has seen HOOD plunge to all-time lows.
In the previous 30 days alone, HOOD has tanked roughly 38% to take a seat at $9.99 on the time of writing, marking the bottom value because the preliminary public providing (IPO) launch in mid-2021.
Robinhood publicly introduced its employees readjustment by way of an April 26 weblog put up by CEO and co-founder Vlad Tenev. He famous that after going by way of a “interval of hyper-growth” between 2020 and H1 2021, the agency’s headcount had elevated practically six occasions, from 700 to just about 3800 workers.
However, Tenev instructed that too many job roles on the firm have since grow to be pointless, stating that:
“This fast headcount progress has led to some duplicate roles and job capabilities, and extra layers and complexity than are optimum. After fastidiously contemplating all these elements, we decided that making these reductions to Robinhood’s employees is the appropriate choice to enhance effectivity.”
“We will retain and proceed to rent distinctive expertise in key roles and supply extra studying and profession progress alternatives for our workers,” he added.
Crypto to assist drive the restoration?
Moving ahead, Robinhood said within the announcement that it’s positioned nicely for the long run with greater than $6 billion price of money on its stability sheet, whereas additionally noting that it’s going to proceed to introduce “key new merchandise throughout Brokerage, Crypto, and Spending/Saving” in 2022.
The agency’s complete income final yr totaled $1.82 billion, up 89% in comparison with 2020, and a major a part of Robinhood’s efficiency was as a consequence of income generated from crypto companies.
Crypto transaction income totalled $419 million in 2021 marking a whopping 1451% enhance in comparison with the yr prior. In Q2 2021 particularly, crypto accounted for 41% of Robinhood’s complete income, nonetheless it is price noting that the determine dropped all the way down to round 13% by This fall.
Robinhood doesn’t look like shedding curiosity within the sector this yr nonetheless, and has made many strikes geared in direction of increasing its crypto choices of late.
On April 19, Cointelegraph reported that Robinhood acquired British crypto-asset agency Ziglu to assist its growth plans into U.Ok. and European markets, one thing which Tenev highlighted will “proceed to speed up” this yr.
Earlier this month, Robinhood additionally rolled out its extremely anticipated crypto pockets to 2 million waitlisted customers, outlined plans to combine the Lighting Network, and it listed Shiba Inu (SHIB) after months of campaigning from its supporters.