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Robinhood axes nearly 1 in 10 employees members as inventory hits all-time low

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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 for the reason that preliminary public providing (IPO) launch in mid-2021.

The decline is a part of a longer-term bearish pattern that has seen the value of HOOD frequently lower since its all-time excessive of roughly $70.39 on Aug. 4 2021 based on TradingView.

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 via a “period of hyper-growth” between 2020 and H1 2021, the agency’s headcount had elevated practically six occasions, from 700 to just about 3800 staff.

However, Tenev prompt that too many job roles on the firm have since turn into pointless, stating that:

“This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal. After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency.”

“We will retain and continue to hire exceptional talent in key roles and provide additional learning and career growth opportunities for our employees,” he added.

Related: Robinhood CEO outlines how DOGE may turn into ‘currency of the internet’

Crypto to assist drive the restoration?

Moving ahead, Robinhood acknowledged within the announcement that it’s positioned nicely for the longer term with greater than $6 billion value of money on its stability sheet, whereas additionally noting that it’s going to proceed to introduce “key new products across Brokerage, Crypto, and Spending/Saving” in 2022.

The agency’s whole income final yr totaled $1.82 billion, up 89% in comparison with 2020, and a major a part of Robinhood’s efficiency was because of income generated from crypto providers.

Crypto transaction income totalled $419 million in 2021 marking a whopping 1451% improve in comparison with the yr prior. In Q2 2021 specifically, crypto accounted for 41% of Robinhood’s whole income, nevertheless it is value noting that the determine dropped right down to round 13% by This fall.

Robinhood doesn’t seem like shedding curiosity within the sector this yr nevertheless, and has made many strikes geared in the 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.Okay. and European markets, one thing which Tenev highlighted will “continue to accelerate” 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.