Online brokerage Robinhood (HOOD) is cutting 9% of its workforce ahead of its upcoming first
quarter earnings.
The company announced in a blog post that it is eliminating 9% of its full-time employees.
Robinhood reported having 3,800 full-time employees at the end of last year.
Robinhood is scheduled to release its first-quarter results after markets close this Thursday
(April 28). The blog post didn’t mention those financial results other than to say that the
company has $6 billion U.S. in cash on its balance sheet.
Going forward, Robinhood said it will review employee growth plans and “continue to prioritize
internal opportunities for automation and operational efficiency.”
Robinhood rose to prominence in early 2021 as a key player in the GameStop (GME) short
squeeze, where retail investors bid up so-called “meme stocks.”
The brokerage saw a surge of new customers and cash and entered the public markets through
an initial public offering (IPO) last July. However, the stock has traded below its IPO price of $38
U.S. per share in recent months.
So far this year, Robinhood stock has declined 46% to trade at $10 U.S. per share.
