The popular cryptocurrency marketplace Robinhood has begun significant personnel changes due to the collapse of the cryptocurrency market.
Stock and cryptocurrency trading platform Robinhood will lay off almost a quarter of its employees due to the deteriorating macroeconomic environment. This was stated in his blog by the co-founder and CEO of the company Vlad Tenev. The announcement comes amid news of a $30 million fine from the New York State Department of Financial Services for alleged anti-money laundering, cybersecurity and consumer protection violations.
The layoffs will impact all of the company’s functions, especially operations, marketing and program management, Tenev said. It is reported that the total number of affected employees is 780 people. Most of them will be allowed to work until October 1 with full pay and benefits, as well as a promise to help find a new job.
Recall that in April this year, the company laid off about 9% of its staff, about 350 people. Tenev later stated that this was not enough to secure the company. He took full responsibility for personnel changes and layoffs.
Robinhood posted $318 million in net revenue this year, down 44% from January-June last year, according to fiscal second quarter results released Tuesday. The company’s net loss amounted to $295 million, last year, however, this figure was at the level of $502 million.
Earlier, Bloomberg reported that the cryptocurrency derivatives exchange FTX is considering buying a controlling stake in Robinhood.
Source: Bits
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