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Saturday, August 13, 2022

Robinhood lays off 23% of staff after crypto crash, stocks slow

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Several companies are cutting their workforces as the world fears a storm of recession may soon hit. Robinhood is the latest company to announce the layoff of its employees. The company said it plans to lay off 23% of its staff. This is not the first for the company and Robinhood has already laid off 9% of its workforce in April this year.

While most companies said high inflation and restructuring teams for better performance were the reasons for layoffs, Robinhood CEO Vlad Tenev said record inflation and a big market crash of cryptography are some of the reasons for the latest decision. He disclosed that the layoffs are being made in the operations, marketing and program management departments of the company.

He also admitted that Robinhood overhired in 2021 with the idea that retail investors would continue to trade stocks and crypto assets at a price the company witnessed during the early days of the pandemic, according to a report by ‘Engadget.

The latest change will “flatten hierarchies, reduce cross-functional dependencies and remove redundant roles and positions,” he added. The company will send an email to the employees who will be made redundant or it could also drop a message on Slack. Affected employees are expected to remain with the company until October 1, according to the report.

Additionally, Google is also expected to lay off some employees in the near future, as the company first announced it was slowing hiring for this year, then said it was freezing hiring for at least two weeks. The reason behind this is that Google CEO Sunda Pichai is unhappy with the performance of the existing employees and wants them to be more efficient and focused. He feels that the company has too many employees, but few of them work efficiently.

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Read also | Tech companies laid off more than 32,000 workers in Silicon Valley in July, many are entering a period of hiring freezes

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