Robinhood is laying off nearly a quarter of its workforce, CEO Vlad Tenev says In a message posted to the company blog.
“As part of a broader corporate restructuring into a general manager (GM) structure, I have just announced that we will be laying off approximately 23% of our workforce,” Tenev wrote. “While employees across all functions will be affected, the changes are particularly concentrated in our operations, marketing and project management functions.”
As part of the restructuring, Robinhood’s chief product officer, Aparna Chennapragada, will also step down. Filings with the Securities and Exchange Commission, although she will “continue to serve in an advisory role to the CEO or his designee until January 2, 2023”.China Pagda join the company March 2021 from Google.
The announcement comes as Robinhood released its earnings for the second quarter of 2022 a day earlier, reporting three-month total revenue of $318 million, 44% lower than the same period in 2021.
In April, Robinhood said Plan to cut 9% of full-time staff, but “it’s not enough,” Tenev said. The company had assumed increased trading following events such as the GameStonk phenomenon and bullish cryptocurrency markets would continue into 2022, but has already encountered headwinds from inflation and a so-called “crypto winter” affecting other companies. Those affected by the layoffs will be able to remain at Robinhood through October 1 with regular pay and benefits, while receiving severance pay, Tenev said.
In recent weeks, many companies have had to lay off or lay off staff. Tesla laid off nearly 200 Autopilot employees, while Shopify laid off 10% of its workforce.
Update August 2, 5:13pm ET: Added news that Robinhood’s chief product officer is also stepping down.