It’s been a volatile year for retail investment behemoth Robinhood. The fintech company is laying off 23% of its workforce, as first reported by the Wall Street Journal and confirmed by TechCrunch. The layoff comes just three months after Robinhood cut 9% of full-time staff.
At the time of its last layoffs in late April, it is believed that Robinhood had about 3,100 employees after letting go of around 300 workers. Doing the math, a 23% reduction in staff would amount to about 713 employees affected, leaving roughly 2,400 employees currently employed at the company
The company did not comment directly on the latest layoffs, pointing TechCrunch only to a blog post by CEO and co-founder Vlad Tenev. In that post, Tenev wrote that while “employees from all functions would be impacted, the layoffs are “particularly concentrated” in the company’s operations, marketing and program management functions.
In the post, Tenev took responsibility for Robinhood’s apparent overhiring in the frenzy that was 2021. He said that the company last year staffed many of its operations functions under the assumption that the “heightened retail engagement” that was taking place would continue in 2022.
“In this new environment, we are operating with more staffing than appropriate,” he wrote. “As CEO, I approved and took responsibility for our ambitious staffing trajectory — this is on me.”
Tenev also addressed that its earlier round of layoffs “did not go far enough.”