Vlad Tenev, the CEO at Robinhood has made an announcement in regards to laying off its employees.
Robinhood to Lay Off 23% of its Workforce
It seems that while the cryptocurrency industry has experienced a slight uptrend, Robinhood still finding it difficult to make it over the hot waters.
The company has been trying to recover from the losses but it is still not able to make things better. Therefore, the company has been trying to cut off costs in order to keep running its operations.
The recent move by Robinhood to lay off the employees is one of many attempts made by the mobile-based trading company to reduce its costs.
Robinhood has already laid off many employees since the company’s downfall began and things do not seem to be turning for the company.
The reason behind the Lay Offs
The general situation of the cryptocurrency market since the start of 2022 has been bearish. To be precise, the year 2022 has proven to be disastrous not only for cryptocurrencies but also for institutions and firms that were connected with cryptocurrencies.
It is not just Robinhood that has laid off its employees, many other firms in the cryptocurrency industry have done the same.
Due to the constant cryptocurrency market dips, many firms have lost a lot in their portfolios and valuations. Now the companies are trying to cover their losses and come up with different ideas to improve their revenues and earnings results.
Almost every cryptocurrency-based firm has reported below estimations or disappointing earnings for the second quarter. Unfortunately for Robinhood, the situation has been the same and it is also recording below estimation earnings for the past few quarters.
History of Robinhood
When Robinhood was first launched, it operated as a stock trading application. However, as the cryptocurrencies started gaining momentum, Robinhood announced it had adopted cryptocurrencies.
It started offering cryptocurrency trading services and with the introduction of Dogecoin (DOGE), its business skyrocketed. However, as the demise of the cryptocurrency came in late 2021, things went south for Robinhood.
Robinhood’s Attempt to Recovery
Since its demise, Robinhood has been taking all the measures to narrow its losses during difficult times. The company is also attempting to increase its revenue opportunities and has introduced multiple assets in the running year to bring in more users.
This year Robinhood has launched multiple cryptocurrencies so more investors can join the platform. Still, it may take time for Robinhood to get back on track.
According to reports, Robinhood has laid off 780 of its total employees, which translates to 23% of Robinhood’s overall workforce.
Since the announcement, Robinhood’s share prices have surged by 2.82%. This means that the recent decision made by Robinhood has been well received by the investors.
However, there is a limit to the number of employees Robinhood can lay off. It has to come up with a permanent or at least a long-term solution in order to increase its revenues and earnings.