On Tuesday, inventory costs plummeted for Robinhood as the corporate introduced plans to chop 9% of full-time workers.
Throughout the pandemic, the online-trading platform added roughly 3,100 jobs because the buying and selling app’s reputation surged amongst a brand new era of traders desirous to study the ropes of investing throughout lockdown. This noticed Robinhood develop from roughly 700 employees to virtually 3,800 since 2020.
“This fast headcount progress has led to some duplicate roles and job capabilities, and extra layers and complexity than are optimum,” Tenev wrote. “After fastidiously contemplating all these elements, we decided that making these reductions to Robinhood’s employees is the suitable resolution to enhance effectivity, improve our velocity, and be certain that we’re attentive to the altering wants of our prospects.”
Following the information, Robinhood’s shares decreased by 2.6% in after-hours buying and selling. The inventory ended Tuesday on the lowest closing worth — $10 — since final July, when the corporate first went public. Robinhood firm’s inventory costs have been unstable this 12 months, reducing 43.6 %.
To this point, Robinhood’s steadiness sheet nonetheless reveals over $6 billion in money. Based on FactSet, it had over $8 billion in money and equivalents final December.
Crypto providers have been a booming sector for the corporate, serving to drive a big bump in income. Within the second quarter of 2021, 41% of Robinhood’s complete income stemmed from cryptocurrencies. And final 12 months, the corporate logged $419 million in crypto transactions, a greater than 1,400% improve from 2020.
In April, Robinhood took over the UK crypto agency Ziglu to shore up its efforts to broaden into abroad markets, which the corporate hopes to proceed this 12 months. Robinhood additionally provided its crypto pockets to 2 million prospects on a waitlist, which has widespread memecoins like Shiba Inu already accessible.
Earlier this March, Robinhood additionally introduced a brand new card enabling computerized investments in cryptocurrencies. In new rewards bonuses, Robinhood mentioned it might allow weekly inventory or crypto bonuses by rounding up paychecks to the closest greenback, and providing 10% to 100% on the paychecks.
“With the brand new Money Card, we’ll be there with them once they spend on their every day wants—from morning espresso to weekend groceries—and assist them construct their investing habits for his or her future alongside the way in which,” the corporate mentioned.
