The app-based brokerage dismissed 780 people, or about 23% of staff, and also announced the departure of a top executive Tuesday. Reductions were concentrated in operations, marketing and program management functions, Chief Executive Officer
A pandemic trading boom -- including the meme-stock frenzy that drove up shares of
“I anticipated that what we saw in 2020 and 2021 in terms of market conditions would last longer than it turned out to last, and so that’s on me,” Tenev, 35, said in a conference call with journalists. “The reality of it was we over-hired, in particular in some of these support functions.”
The move, which follows an earlier headcount reduction in April when Robinhood eliminated about 9% of its staff, brings the total number of employees dismissed this year to more than 1,000.
In a separate
The company will transition to a model where “general managers” take broad responsibility for parts of the business to get rid of hierarchies, Tenev said in the statement.
Tenev, who founded the company in 2013 with Stanford University roommate
Robinhood also reported second-quarter results a day ahead of schedule, saying its net loss for the period was $295 million, or 34 cents a share. Net revenue tumbled 44% from a year earlier to $318 million.
Shares of Robinhood, which lost more than three-quarters of their value since the IPO, slid 1.5% to $9.09 in extended trading at 5:39 p.m. in New York.
(Updates with CEO comments starting in fourth paragraph, executive’s departure and severance charges in sixth.)
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