The U.S. financial services company Robinhood Markets Inc. declared that it would be laying off about 9% of its full-time employees by removing the duplicate jobs it had added when the company saw excitable growth during the COVID-19 pandemic in 2020.
Robinhood CEO Vlad Tenev announced on Tuesday that the financial services company would lay off about 9% of its full-time employees in the wake of a drop in active users following torrid growth early in the pandemic, sending Robinhood stock plunging nearly 72% in six months.
The company, which is reporting its quarterly results later this week, said the rapid headcount growth has led to some duplicate roles and job functions.
As of December 31, the company’s total headcount was 3,800. Robinhood’s easy-to-use interface has made it a hit among young investors trading from home on cryptocurrencies and stocks such as GameStop Corp during the COVID-19 pandemic.
Vlad Tenev CEO shared that the company had assessed all the factors before deciding on layoffs, stating that it is the right decision to increase its efficiency and velocity and ensure that they are meeting customers’ changing needs.
Tenev also said that the company would contact every laid-off employee and help them decide their plans after the layoff, offer separation packages and help them find new jobs.
The company saw a loss of about 3.75% in today’s market trading and another 5% in extended trading hours. During its growth period from 2019 to 2021, the company expanded its workforce from 700 to nearly 3,800.
