Robinhood Markets (HOOD) has announced that it is laying off 23% of its workforce and closing
multiple offices as its finances continue to deteriorate.
The online brokerage fired 780 staff members, which is nearly a quarter of its entire workforce,
as it issued disappointing second quarter results.
The headcount reductions were concentrated in operations, marketing, and program
management, the company said in a news release.
A pandemic trading boom led Robinhood to a successful initial public offering (IPO) in July
2021. However, since then, the business and company’s stock have crumbled as users have
abandoned the trading app.
This is the second time this year that Robinhood has reduced its workforce. In April, Robinhood
eliminated 9% of its staff, bringing the total number of employees dismissed this year to more
than 1,000.
Robinhood also announced that its Chief Product Officer, Aparna Chennapragada, is leaving
the company and that it will close two of its offices.
The layoffs and office closures were announced along with Robinhood’s Q2 results, which
showed the brokerage had a net loss of $295 million U.S., or $0.34 U.S. a share. Net revenue
fell 44% from a year earlier to $318 million U.S.
Robinhood’s stock is down 50% this year and trading at $9.23 U.S. per share. The stock has
fallen 74% since its IPO a little over a year ago.
