Stock-trading app Robinhood intends to lay off 9 percent of its workforce, CEO and co-founder Vlad Tenev has confirmed
Tenev said the organization hired aggressively as the pandemic grew.
But it turns out the expansion was too rapid, resulting in job overlap and other concerns.
Tenev said: “This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal.
“After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers.”
Tenev said “Between 2020 and 2021, Robinhood grew its staff from 700 to around 3,800. The layoffs mean Robinhood is cutting loose more than 300 workers.”
In late Tuesday trade, Robinhood’s stock fell more than 5% to a new low below $10 per share, before recovering marginally. The price of the stock has dropped by more than 70% since its first public offering
Source: Business Insider