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Retail trading platform Robinhood Markets said Tuesday it is laying off about 23% of its employees, sending its shares down more than 3% in extended trading.

The company is also changing its organizational structure to “drive greater cost discipline,” Robinhood Chief Executive Officer Vlad Tenev said in a blog post.

Robinhood had already slashed 9% of its workforce in April, saying the company’s growth had led to some duplicate roles and job functions. Tenev said Tuesday that those cuts did not go far enough. 

“As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me,” Tenev said.

Robinhood’s easy-to-use interface made it a hit among young investors trading from home on cryptocurrencies and stocks such as GameStop during the COVID-19 pandemic.

CEO Vlad Tenev
The company is also changing its organizational structure to “drive greater cost discipline,” CEO Vlad Tenev said.

However, the company has posted declines in revenue as its customer base has been spooked by rising interest rates and decades-high inflation. 

Robinhood announced second-quarter results a day earlier than expected. It posted a 6% sequential increase in revenue to $318 million despite a market sell-off in equities and cryptocurrencies. But revenue was down 44% from a year earlier.

Robinhood announced last quarter that it was changing the way it provided revenue projections by providing “certain limited purpose statistical and operational results on a monthly basis.”


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