Robinhood fired 9% of full -time employees against the background of collapse of shares by 75% after IPO

Online Robinhood reduced the staff by 9%. CEO Vlad Terev explained this step by the need to increase efficiency after losses of $ 2 billion for the previous two quarters.

During 2020 and the first half of 2021, the startup survived the period of the hyper-rost-the number of non-owned accounts jumped from 5 million to 22 million, revenue from $ 278 million in 2019 to $ 1.8 billion in 2021. A similar dynamics of key indicators required an increase in the number of personnel from 700 to almost 3800 people.

“This rapid growth led to the duplication of some roles and official functions, as well as to the unnecessary complication of the structure”, – said Terev.

The state optimization will guarantee the further implementation of the mission to democratize finance, he promised. In 2022, Robinhood will present new products in the field of brokerage services, cryptocurrencies, as well as expenses/savings and continue international expansion. The basis for this will be $ 6 billion on the balance sheet.

In July 2021, the online Broker went to IPO. From the peak values ​​of the Robinhood action collapsed by 88.8%. Since the beginning of 2022, its capitalization has sagged by 46.5%.

The Robinhood application has become popular in pandemia and a jump in interest in Dogecoin. Trade with a popular meme-token in the second quarter of 2021 brought over 40% of the company’s income.

Subsequent reports recorded a decrease in income from cryptototrading and user activity. The ratings of Robinhood on the attitude of Wall Street could also affect the risks of revising the SEC regulation or prohibition of charging payment for the stream of orders. This practice forms the lion’s share of the company’s revenue.

In April 2022, the Robinhood online Broker expanded access to the beta testing of a cryptocurrency wallet What is staking? up to 2 million customers and reported on the integration plans of Lightning Network “in the coming months”.

Prior to this, the online Broker announced the replacement of debit cards with new Cash Card with the possibility of obtaining cashback in digital assets.

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