The CEO, Vlad Tenev, stated in a blog post that layoff were unavoidable during significant expansion in 2020 and 2021. By the end of 2021, Robin Hood’s net funded accounts will have earned more than a quarter of a billion dollars in revenue. Over the same period, the number of employees at this firm increased from 700 to over 3,800, a significant rise.
Robinhood To Lay Off 9% Of Full-Time Employees
According to a press release from Robinhood Markets, Inc., at least 9 percent of full-time employees at the financial services company may lose their jobs due to the company’s rapid growth during COVID-19 in 2020, the company revealed. As a result of lower borrowing rates, economic stimulus, and pandemic restrictions, app usage increased.
The stock price of the American retail trading business, which went public in July 2021 for $38 per share, is currently falling further. The corporation’s stock reached a high of $85 per share before beginning a slow drop to $10 per share in the following year.
During today’s market trading, it lost 3.75 percent, with another 5 percent lost during the extended trading hours. In three years, the company’s Workforce increased from 700 to around 3,800 individuals, a significant increase.
Following the meeting, Vlad Tenev, the company’s CEO, shared the good news via a company blog post. According to Tenev, during the company’s 2020 growth phase, specific duplicate roles were created, resulting in additional employees and extra complexity, both of which were detrimental to the organization’s overall efficiency.
According to him, before deciding to lay off employees, the company reviewed its choices. It determined that this was the most effective course of action to enhance efficiency and speed while also meeting clients’ constantly changing needs.
Because of the epidemic, companies such as AMC Inc. and GameStop and cryptocurrencies such as Bitcoin have fueled Robin Hood’s quick expansion in 2020. In March, the firm announced that it would increase trading hours for its clients by six and a half hours per day, seven days a week.
Tenev also stated that the business would contact every laid-off employee to assist them in determining their post-layoff plans, provide parting packages, and help them find new employment. Tenev explained the decision to employees during a company-wide conference, stating that the move was necessary since the current location had “more layers and complexity than was desired.”
According to Tenev, while the company “scrutinizes” its labor expansion plans, “opportunities for automation” are prioritized over all other considerations. Amid the pandemic-era boom, lockdowns, historically low financing rates, and government assistance enabled the company to see “rapid headcount growth.”
Accounts with net funds increased from 5 million to 22 million between 2020 and the first half of 2021, while revenue increased from $278 million to more than $1.8 billion during the same period. As a result of this expansion, the company’s Workforce increased from 700 to more than 3,800 employees.
Tenev asserts that the company’s financial position is strong, having a cash reserve of more than $6 billion at writing. It’s a brand-new function in the Workforce, and all of the pertinent information has already been provided above.
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