Robinhood to Get Rid of 9% of Its Staff after Stocks Tank

| Updated
by Sanaa Sharma · 3 min read
Robinhood to Get Rid of 9% of Its Staff after Stocks Tank
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When talking about the future, Robinhood claimed that while this was a carefully decided move.

Brokerage company Robinhood has disclosed layoffs for almost nine percent of its staff after a firesale resulted in the HOOD price dropping to new lows. Over the past month, HOOD has dipped to approximately thirty-eight percent while staying at $9.99 presently. Ever since the inauguration of its initial public offering (IPO) in 2021, this is the bottommost spot hit by the HOOD price.

The gradual descent is a significant part of the bear direction presented by the HOOD as the rate of the stock has been declining continuously. After the introduction of FTX.US and Bitstamp USA in stock trading, Robinhood began experiencing all-time lows as its share price dropped. Initially, Robinhood had achieved a peak of $70.39 in August 2021.

While that is true, Robinhood has now officially announced a staff redistribution as well as mass dismissal of its workforce. Through a Tuesday blog post by Chief Executive Officer and co-founder Vlad Tenev, it was noted that the employee numbers skyrocketed from 700 to about 3800 in 2020 and 2021 when the firm was undergoing extensive growth.

Having said that, Tenev claimed that several job positions at the firm have now been rendered unproductive. The CEO allegedly claimed that the double roles carried out in a single position turned out unnecessary with the dropping prices. Since the company wanted to enhance the authenticity and efficiency of the work done in the organization, the management decided to lay off a majority of its employees. Additionally, Tenev also promised an inclusive attitude towards new and outstanding talent while offering more prospects and functionalities to its workforce.

When talking about its future Robinhood claimed that while this was a carefully decided move, in the upcoming months, the company will possess over $6 billion worth of cash on its balance sheet. The firm also plans to launch striking new products in Brokerage, Crypto, and Spending/Saving in 2022.

At the end of the previous year, the company’s aggregate profits were about $1.82 billion, increasing by eighty-nine percent compared to the previous year in 2020. Crypto transaction income was summed to be somewhere around $419 million in 2021, denoting an exceptional 1451% growth from the previous year.

Robinhood doesn’t seem to experience a diminished interest in the crypto sector this year and is most likely to develop its crypto offerings for better services eventually.

Recently on April 19th, the company Robinhood bought a British crypto-asset company named Ziglu. This was done to observe efficient development schemes in the United Kingdoms and European Markets. A couple of weeks ago, Robinhood also distributed its much-awaited wallet to its 2 million waitlisted customers.

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