Retail trading platform Robinhood Markets Inc said on Tuesday it is laying off about 23 per cent of its employees, sending its shares down more than 3 per cent in extended trading.
The company is also changing its organizational structure to "drive greater cost discipline," Robinhood Chief Executive Officer Vlad Tenev said in a blog post https://blog.robinhood.com.
Robinhood had already slashed 9 per cent of its workforce in April, saying the company's growth had led to some duplicate roles and job functions. Tenev said Tuesday that those cuts did not go far enough.
"As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me," Tenev said.
Robinhood's easy-to-use interface made it a hit among young investors trading from home on cryptocurrencies and stocks such as GameStop Corp during the COVID-19 pandemic.
However, the company has posted declines in revenue as its customer base has been spooked by rising interest rates and decades-high inflation.