Robinhood cuts staff by 10 percent on renewals | Financial Markets News

CEO Vlad Tenev said that despite the company’s strong financial position, it has become a ‘very rich group’.

Robinhood will reduce its headcount by 10 percent, counting 290 employees, among other management goals.

The shopping center announced the reductions on Tuesday as it reorganizes in an effort to ship products across the company. In addition to woundsthe company, which has about 2,900 employees, will close open job listings.

“We cannot stop working as an organization with many people. We must be an impartial, focused group,” CEO Vlad Tenev said in a letter to employees shared on social media X.

“Robinhood’s business has not been strong,” Tenev, who, according to the AFL-CIO’s CEO pay tracker, will make seven times more than the average worker in 2024, said in a post.

The Menlo Park, California-based company expects the renovation to cost $28m in the second quarter.

AI-led efficiency was not a major driver of the decline, as Robinhood has been aggressively leveraging the entire team, Citizens JMP Securities analyst Devin Ryan wrote in a note.

“We’re seeing the big changes that technology is making to make the company more efficient and more profitable.”

Robinhood said it was acting “from the strength of the business”, citing the June to date high daily trading volume in the financial, options and prediction markets.

In April, Robinhood missed first-quarter profit expectations as crypto-driven volatility weighed on trading. Markets have been improving, with reduced tensions in the Middle East and stronger markets supporting trade.

Traders, often referred to as mom-and-pop traders, tend to retreat during periods of volatility.

To reduce its reliance on trading, which can fluctuate with market sentiment, Robinhood has grown into a major financial platform in recent years.

On Wall Street, Robinhood’s stock fell 2.9 percent in afternoon trading.