Robinhood axes almost 1 in 10 staff members as stock hits all-time low
Popular retail trading platform Robinhood has fired 9% of its workforce amid a firesale of its stock that has seen HOOD plunge to all-time lows.
In the past 30 days alone, HOOD has tanked roughly 38% to sit at $9.99 at the time of writing, marking the lowest price since the initial public offering (IPO) launch in mid-2021.
The decline is part of a longer-term bearish trend that has seen the price of HOOD continually decrease since its all-time high of roughly $70.39 on Aug. 4 2021 according to TradingView.
Robinhood publicly announced its staff readjustment via an April 26 blog post by CEO and co-founder Vlad Tenev. He noted that after going through a “period of hyper-growth” between 2020 and H1 2021, the firm’s headcount had increased nearly six times, from 700 to nearly 3800 employees.
However, Tenev suggested that too many job roles at the company have since become unnecessary, stating that:
“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 could become ‘currency of the internet’
Moving forward, Robinhood stated in the announcement that it is positioned well for the future with more than $6 billion worth of cash on its balance sheet, while also noting that it will continue to introduce “key new products across Brokerage, Crypto, and Spending/Saving” in 2022.
The firm’s total revenue last year totaled $1.82 billion, up 89% compared to 2020, and a significant part of Robinhood’s performance was due to revenue generated from crypto services.
Crypto transaction revenue totalled $419 million in 2021 marking a whopping 1451% increase compared to the year prior. In Q2 2021 in
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