简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The company strengthened its workforce from 700 to 3,800 between 2019 and 2021.
A lot of duplicate roles were created during its growth phase.
American commission-free broker, Robinhood (Nasdaq: HOOD) is going to significantly reduce its workforce, laying off around 9 percent of its full-time employees. The decision came when publicly-traded Robinhood stocks are trading at an all-time low price.
Take Advantage of the Biggest Financial Event in London.
In an official letter published on Tuesday, Robinhood‘s CEO, Vlad Tenev pointed out that the broker increased its headcount almost six times from 700 to nearly 3800 between 2019 and 2021. That was particularly fueled by Robinhood’s revenue growth from around $278 million to $1.8 billion.
“This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal. After carefully considering all these factors, we determined that making these reductions to Robinhoods staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers,” Tenev wrote.
But, the company will not freeze its hiring and “will retain and continue to hire exceptional talent in key roles.”
HOOD at All-Time Low
However, Tenev did not mention the falling value of Robinhood stocks on the stock markets. The company went public in mid-2021 with an initial public offering (IPO). At its peak in August 2021, HOOD stocks peaked at roughly $55 but have slumped almost 82 percent since.
Robinhood disrupted the retail trading industry with its commission-free model. But, the company is now heavily dependent on cryptocurrency trading as crypto traders are now generating a large part of its revenue.
Additionally, the broker has reported heavy losses for the last few quarters: in the last quarter of 2021, the platform suffered a net loss of $423 million, while in the prior quarter, it had reached $1.3 billion.
Meanwhile, the platform continues to expand its presence on the crypto front. It recently purchased British crypto startup Ziglu to further enhance its presence in the country.
“We will continue to accelerate our product momentum through 2022 and will introduce key new products across Brokerage, Crypto and Spending/Saving,” Tenev added.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Maxim Group LLC has reached a settlement with the Financial Industry Regulatory Authority (FINRA), agreeing to pay a fine of $75,000 due to violations related to their reporting practices. This fine comes in the wake of insufficient disclosures in the firm’s public quarterly reports on the handling of customer orders in National Market System (NMS) securities.
Choosing a reliable broker is crucial for both novice and experienced traders. Emarlado, a forex broker registered in Saint Lucia, has emerged in the market over the past two years, offering a variety of trading instruments ranging from currency pairs and stocks to cryptocurrencies, commodities, and indices. However, recent developments have raised concerns about the legitimacy of this broker, prompting many to question whether Emarlado is suspected of fraud.
Swissquote introduces fractional shares and crypto trading, offering affordable and flexible investment options with a new saving plan for diversified portfolios.
Elite Pro Markets is an unregulated, inaccessible Forex broker with no physical office. Rated 1.5 on WikiFX, it's a scam you should avoid.