Robinhood to lay off 9% of workforce as its stock hits new low


Robinhood Markets Inc. is reducing its workforce by 9%, the CEO of the e-commerce platform announced on Tuesday afternoon, as the company’s shares reached a new low.

CEO Vlad Tenev wrote in a blog post that Robinhood HOOD,
-3.75%
it increased its workforce from about 700 employees to nearly 3,800 since early 2020, as the company’s business application grew in popularity.

“This rapid staff growth has led to some duplicate job roles and functions, and more layers and complexity than are optimal,” he wrote. “After carefully considering all of these factors, we determined that making these reductions to Robinhood staff is the right decision to improve efficiency, increase our speed, and make sure we meet the changing needs of our customers.”

Shares of Robinhood closed at $ 10 on Tuesday, the lowest closing price since they went public at $ 38 per share last July. Shares rose to $ 85 after the initial public offering, but have been in free fall so far this year, with a 43.6% drop to 2022 as the S&P 500 SPX index.
-2.81%
has fallen by 9.9%.

Shares fell 2.6% in out-of-hours operations after the announcement on Tuesday afternoon. Tenev did not provide any information about the company’s recent performance on the blog post, other than stating that the company still has more than $ 6 billion in cash on its balance sheet; the company had more than $ 8 billion in cash and cash equivalents at the end of 2021, according to FactSet.

Robinhood is scheduled to release first quarter results Thursday afternoon.



Source link

Leave a Reply