Cryptocurrency collapse in Robinhood: 23% of employees have been sidelined

Robinhood chain of disappointments – The intermediary Robin Hood it is very popular with US retail investors. Also good for easy access to markets Actions classics, which for the new asset class of cryptocurrencies. Unfortunately, the company chains up the bad news. When he just got a $ 30 million fine from the NYDF, the company now announces it has to do so lay off more employees.

Robinhood will lose nearly a quarter of its workforce

“Shit, fly in a squadron,” Jacques Chirac said. This sentence never was as true only for the brokerage company Robinhood Markets Inc.. Already at the end of April 2022, the platform announced starts with 9% of its employees full time.

But obviously the degreasing did not seem not big enough. In a blog post published on August 2, 2022, Vlad TenevRobinhood CEO and co-founder is forced to announce the departure of additional employees.

And this new wave of layoffs is more massive. This is how almost a quarter of the Robinhood workforce who will have to pack their bags and leave.

“As part of a broader company reorganization (…), I just announced that we are reducing our workforce by around 23%. While employees of all categories are affected, the changes are particularly concentrated in our operations, marketing and program management departments. “

Vlad Tenev, CEO of Robinhood

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The macroeconomic environment cited as the main culprit

The fever stock markets, inflation at a gallop, and the bear market (bear market) on Bitcoin and cryptocurrencies of course undermined the enthusiasm – and the revenue – the broker specializing in small holders.

” From [les licenciements d’avril], we have seen a further deterioration of the macroeconomic environment. With inflation at a peak of the last 40 years, accompanied by a vast collapse of the cryptocurrency market. This further reduced clients’ trading activity and assets in our custody. “

Vlad Tenev, CEO of Robinhood

From the disaster of Land (LUNA) and its stablecoin UST in May 2022, unfortunately, the cryptocurrency sector is very used to to these waves of layoffs. At the end of July, for example, is the NFT market ofOffshore who had to announce the departure of 20% of its workforce.

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