Robinhood, an funding app, is firing 750 employees, or 23% of its workforce. The company claims that one cause is the waning curiosity in cryptocurrencies.
CEO Vlad Tenev mentioned in a weblog publish to colleagues, “Over the previous yr, now we have been recruiting people on the concept the need for the inventory market and cryptocurrency that erupted in the course of the corona pandemic will proceed into 2022.” Nonetheless, it seems such will not be the case.
On the finish of the earlier yr, the app’s lively person base had already decreased by 8%, which led Robinhood to make price reductions. “However that’s inadequate. Since then, the macroeconomic setting has gotten worse and the cryptocurrency markets have crashed. The app nonetheless had 15 million customers on the finish of June, which is 28% fewer than the earlier yr. Gross sales decreased by 44%.
In keeping with the CEO, there shall be layoffs throughout all divisions and nations, with a give attention to operations and advertising and marketing.
The New York State Division of Monetary Providers levied a $30 million punishment towards the enterprise on Tuesday “for substantial violations of banking secrecy, anti-money laundering, and cybersecurity laws.”