Robinhood chief executive Vlad Tenev announced on Tuesday that she was retiring 9% of her permanent staff.
Earlier this year, Reuters reported Robinhood had 3,400 employeesand while that does not mention a full contract agreement, it looks like this cut could affect up to 300 people according to TechCrunch.
Consumer investment and the U.S. business services company, which went public at $ 38 in July 2021, saw its highest price of $ 85 per share before entering a steady decline and seeing its value fall by only $ 10 per share. The company lost 3.75% of its trade today – the market is low today, overall – and another 5% trading in late hours compared to the announcement of the strike.
While Robinhood has reported good news in recent months – the company has seen its price increase by 25% in March following reports that it is increasing its trading hours equity for 24-hour mobility support purposes – there was also a very large number. struggling with an unicorn earlier. For example, the company announced a data breach last November that affected millions of its users.
Earlier this month, we reported that both Robinhood and crypto company Coinbase benefit from going public when markets are good, saying they are “lucky to go public when they do.” they are hot and can float to attractive levels.What has happened since they got out of their hands, but as they return daily, they do not have a huge and illegal value attached to their chests that they now have live IPO later. “
In the blog post Today, Tenev has listed the company for the past two years, describing it as “high growth accelerated by a number of factors including disasters, low interest rates, and financial stimulus.” During that time, he said, the 7-year-old company “grew its net accounts from 5M to 22M and revenues of $ 278M in 2019 to more than $ 1.8B in 2021. To meet customer and market needs, we have increased counting our leaders around 6X from 700 to almost 3800 during that time. ” This resulted in $ 6 billion in cash on the balance sheet, Tenev revealed.
Like any company, this kind of growth comes with more jobs opening up to manage that growth, which in turn results in fewer roles and jobs, he writes.
“After carefully considering all these factors, we have decided that making this Robinhood staff reduction is the right decision to improve efficiency, increase our speed, and ensure that we respond to the changing needs of our customers,” he added.
Robinhood’s announcement comes days before the company announces its financial performance for Q1 2022. According to the company’s IR website, Robinhood will report on its first-quarter results. April 28th – The company’s decision to play a major role in its employees could be a way to overcome the frustration of investors if the result does not measure road expectations.
According to Yahoo Financial Average, analysts expect Robinhood to report Q1 losses of $ 0.36 per share compared to revenue of $ 355.78 million.
Robinhood has seen its value decline as stock 2020-2021 and TechCrunch investment growth cover a significant decline; its share of the company has been effective in attracting foreign capital as it has grown. How it will manage in less time, or perhaps poor growth is obvious. According to pouring S-1Robinhood has generated a total revenue of $ 522.2 million for Q1 2021, which means that if the company succeeds in meeting current expectations in the last quarter, it will earn a negative annual growth rate.
The cost of the US crypto trading service Coinbase is also much lower than normal trading today, losing a lot of ground in the hours to come. Both Coinbase and Robinhood have seen strong growth in crypto trading transactions. If Robinhood goes down, it could reduce investors’ confidence in Coinbase with its pending Q1 results.