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Robinhood, the app that promotes free one-click stock and options trading, said Tuesday it laid off about 340 people, or about 9 percent of its 3,800 employees.
Robinhood CEO Vlad Tenev said: a blog post He said the company was essentially overhired during the pandemic. Since 2020, the company’s workforce has increased nearly sixfold, from 700 to 3,800 people, leading to recurring roles and job functions and “more layers and complexity than is optimal.”
“After carefully considering all these factors, we decided that giving these discounts to Robinhood staff was the right decision to increase efficiency, increase our speed and ensure that we are able to respond to the changing needs of our customers,” said Mr.
He said the company is financially strong and has $6 billion in cash.
Robinhood did not immediately respond to a request for comment.
The Silicon Valley company has long been scrutinized for its commission-free one-click trading, particularly in riskier assets like options. It has grown rapidly and has outstripped competitors, including E-Commerce and other brokers, with its ease of use and lack of fees, but critics have questioned whether it encourages unhealthy behavior, especially among amongst others. young and uninformed individual investors.
Robinhood in early 2021, “mem” stock craze, when groups of individual investors teamed up to boost the prices of some unfavorable stocks, including GameStop. Many used Robinhood to trade.
Robinhood had to stop some trades and boost sales. emergency fund to meet the collateral that its customers need for their transactions. Mr. Tenev’s mobile phone was seized by the authorities as part of an investigation into the situation. More than 50 lawsuits have been filed against Robinhood, and Mr. Tenev has been summoned to testify in Congress.
The company went public in July 2021. lost $3.69 billion last year, But revenue rose 89 percent to $1.82 billion.
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