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Robinhood is robbing the poor as it sets to layoff 23% of its staff

Robinhood is robbing the poor as it sets to layoff 23% of its staff

Robinhood has announced letting go of about a quarter of its employees, months after firing nearly one-tenth of them. In a statement by the company’s CEO, Vlad Tenev, the clear-out affects operations, marketing, and program management.

“As part of a broader company reorganization into a General Manager (GM) structure, I just announced that we are reducing our headcount by approximately 23%. 

“While employees from all functions will be impacted, the changes are particularly concentrated in our operations, marketing, and program management functions,” Tenev’s statement on the company’s blog read. 

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Even ex-Google employee Aparna Chennapragada, who joined Robinhood in March 2021, is losing her role at the company. Although, in her case, she gets to stay in an advisory capacity until January 2023.

In a report, The Verge notes that the announcement came after the company reported a revenue of $318 million for Q2 2022, which marks a 44 per cent loss from the same period the previous year.

Tenev mentioned that the 9 per cent staff reduction Robinhood underwent in April 2022 was insufficient. In fact, the company had employed new hands since then in the hope that the crypto market was past the worst. It turns out that they were wrong.

Affected Robinhood staff can stay with the company until October 1, 2022. During this extended stay, they will receive their regular salaries as well as severance packages. Robinhood’s cuts are the latest cost reduction action we have seen in the tech industry.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.