After a hiring spree last year, Robinhood’s CEO and co-founder Vlad Tenev announced Tuesday that the company will be laying off 9% of its full-time employees citing “duplicate roles and job functions” as the reason.
The stock brokerage firm grew from 700 to nearly 3,800 employees, and so did its revenue from $278 million to $1.8 billion between 2019 and 2021.
In a company blog, Tenev said Robinhood’s layoff was not due to any financial crunches.
Tenev stressed that such decisions are made to achieve higher automation and efficiency.
After his announcement, Robinhood shares fell to $10.00.
The company has not been doing great since it went public in 2021. In the past month, Robinhood has corrected by close to 40%.
Comparatively, Coinbase fared a little better in the market, even though its shares plunged to an all-time low on April 22—to $131.14.