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Robinhood is reducing the number of its employees by 23%, explaining that the reason is related to the crypto market!

Robinhood is reducing the number of its employees by 23%, explaining that the reason is related to the crypto market!

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Answer Robinhood is reducing the number of its employees by 23%, explaining that the reason is related to the crypto market!

Recently, Tell Vlad Tenev, co-founder and CEO of Robinhood:

The company is laying off approximately 23% of its employees due to ongoing negative macroeconomic conditions, including record inflation in the US and the collapse of the crypto sector.

These events reduced the activity of cryptocurrency trading.

Robinhood’s quarterly results showed that the company’s revenue for the second quarter of 2022 amounted to $318 million, compared to the expected $321 million.

The numbers are also far from the $565 million reached in the second quarter of last year.

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Robinhood lays off 23% of its employees.

California-based investment and trading platform Robinhood was among the companies that had to lay off some of their employees this year due to the crypto bear market and the subsequent negative consequences.

In April, the company shed 9% of its full-time employees.

Despite the brief spikes in cryptocurrency prices, the following months continued to be somewhat disappointing for the digital asset market.

This decline, along with the high inflation that pervades the US, has created financial flaws in Robinhood.

In a recent announcement, the company’s CEO clarified that one of about four employees will have to be fired.

Quoting from the announcement:

I just announced that we are going to cut staff by about 23%.

While employees of all functions will be affected, changes are particularly concentrated in our operations, marketing, and program management functions.

Tenev clarified that each employee leaving the company will remain an employee until October 1, 2022.

After that, they will receive regular salaries and benefits (including stock entitlement).

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The company will also provide severance pay, dental and vision insurance premiums, payment for Cobra’s medical expenses, and assistance with finding other employment opportunities.

“Robinhood” records a disappointing second quarter:

Evidence of Robinhood’s financial stagnation is the recently disclosed quarterly results.

The company’s total net revenue of $318 million was up from $299 million in the first quarter, but fell short of the $321 expected.

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Additionally, it is well below the $565 million that was generated in the second quarter of 2021.

It is worth noting that at the time, the company’s profits were mainly driven by the huge interest in meme currencies such as Dogecoin and Shiba Inu.

In the second quarter of 2022, DOGE took 62% of Robinhood’s revenue.

Interestingly, the unsatisfactory numbers and the news of the dismissal did not have a negative impact on the company’s general stock.

Currently, HOOD stock is trading at around $9.20, which is 2% more than yesterday’s numbers.

By comparison, the last time Robinhood revealed that it laid off 9% of its employees, stock prices fell dramatically.

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