Robinhood cutting about 23% of jobs, releases second quarter earnings

Robinhood CEO Vlad Tenev said Tuesday in a press release that the company will reduce its headcount by approximately 23%.

The layoffs will be primarily in operations, marketing and program management. In the release, Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”

Robinhood had previously laid off 9% of its workforce in April.

“I want to acknowledge how unsettling these types of changes are,” Tenev said.

In the release, Tenev said the company would flatten its organizational structure to give new general managers broad responsibility for its businesses. He also said that affected employees would receive an email and a Slack message letting them know if they were being let go or still had a job, immediately after an all-hands meeting to discuss the move on Thursday.

The company also dropped its earnings report for the second quarter, one day earlier than expected. Here’s how it did.

  • Revenue: $318 million vs. $321 million estimated, according to Refinitiv
  • Loss: 34 cents per share vs. 37 cents estimated, according to Refinitiv

Robinhood’s total net revenue of $318 million was up from $299 million in the first quarter, thanks to an increase in revenue from cryptocurrency activities and net interest. However, that revenue number was still well below the $565 million reported in the second quarter of 2021.

The report also showed a decline in monthly active users and assets under custody.

The company has seen growth reverse as the pandemic boom in retail trading appeared to lose steam.

The company went public in July 2021 at $38 per share, and its stock jumped as high as $85 per share in its first month of trading.

However, the stock quickly lost steam. Shares of Robinhood are down 48% year to date and closed at $9.23 per share on Tuesday.

Shares were down about 2% in after-hours trading.

Comments

Post a Comment

Popular posts from this blog

SEC Reopens Comment Period for Proposed Rule Amendments to Modernize Beneficial Ownership Reporting

The Securities and Exchange Commission today reopened the comment period for its proposed amendments to modernize the rules governing beneficial ownership reporting, and the staff of the Commission’s Division of Economic and Risk Analysis released a memorandum that provides supplemental data and analysis related to the proposed amendments’ economic effects. The public comment period will remain open until June 27, 2023, or until 30 days after the date of publication of the reopening release in the Federal Register, whichever is later.   Source: https://companiesbio.com/sec-reopens-comment-period-for-proposed-rule-amendments-to-modernize-beneficial-ownership-reporting-CBIO2320.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam Category: SEC Press Releases Post by: CompaniesBIO.Com
Read more

Starbucks Boston strike: Mayor joins picket line saying 'Boston stands with you'

Image
The mayor of Boston joined Starbucks workers on a picket line Monday to show her support for unionization efforts at one of the coffee chain' s locations there. Mayor Michelle Wu said she wanted to stand with the workers who are part of a movement to organize unions at Starbucks stores nationwide. “I am here because I want you to know very clearly that the city of Boston stands with you,” Wu said Monday, according to WBZ-TV. “We are going to make sure that Boston continues to lead the way in fighting for safe working conditions and the benefits and wages and respect that you all deserve.” In an open letter July 18 directed at the store manager and the district manager , the striking Boston workers accused Starbucks of slashing work hours and creating a “chaotic and hostile” work environment. They also said a supervisor who helped organize the workers was removed. Wu called the alleged union-busting by Starbucks was “disgraceful.” Starbucks sued over union retaliation claims May 2...
Read more

Bud Light fumbles, but experts say inclusive ads will stay

Image
Bud Light may have fumbled its attempt to broaden its customer base by partnering with a transgender influencer. But experts say inclusive marketing is simply good business — and it’s here to stay. “A few years from now, we will look back on this ‘controversy’ with the same embarrassment that we feel when we look back at ‘controversies’ from the past surrounding things like interracial couples in advertising,” said Sarah Reynolds, the chief marketing officer for the human resources platform HiBob, who identifies as queer. On April 1, transgender influencer Dylan Mulvaney posted a video of herself cracking open a Bud Light on her Instagram page. She showed off a can with her face on it that Bud Light sent her — one of many corporate freebies she gets and shares with her millions of followers. But unlike the dress from Rent the Runway or the trip to Denmark from skincare brand Ole Henriksen, Bud Light’s partnership with Mulvaney angered some customers and hurt sales, while the brand’s ...
Read more