App for stock brokerage Robinhood has announced that it will let off about 9% of its full-time employees and reduce the number of duplicate roles it added after the investment platform skyrocketed in popularity as a result of the coronavirus pandemic lockdowns.
Employees are being laid off as ‘Hyper Growth’ slows
According to Vlad Tenev, CEO and co-founder of Robinhood, the investment platform surged rapidly around the onset of the Covid-19 outbreak as more individuals began investing in cryptocurrencies and memestocks such as GameStop.
The company’s headcount increased from 700 to 3,800 over this time. According to Tenev’s blog post, “hyper expansion” resulted in duplicate roles and functions, which led to the decision to slash employees.
“After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers,” Tenev wrote.
During the same time span, the company’s revenue increased from $5 million to $22 million, with revenue exceeding $1.8 billion in 2021.
Dogecoin is a popular cryptocurrency among Robinhood users
The Robinhood app became well-known in the crypto community as a Dogecoin trading app, and it now holds nearly a third of all Dogecoin in circulation on behalf of its users.
The Grayscale Bitcoin fund, on the other hand, is the largest single owner of Bitcoin, although it only holds 3% of the coins in circulation on behalf of its investors.
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