THELOGICALINDIAN - Robinhood the app that affected chargeless oneclick banal and crypto trading appear on Tuesday that it would lay off almost 340 fulltime advisers or about 9 of the 3800 workforce
The move, according to Robinhood CEO Vlad Tenev, is in acknowledgment to a abatement in alive users afterward a aeon of accelerated advance aboriginal in the COVID-19 pandemic, which beatific the company’s amount aerobatics about 72 percent in six months.
Shares of the U.S. customer advance and trading account aggregation alone 5% in continued trading Tuesday afterwards the aggregation appear the layoffs in a blog post.
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Robinhood Market Value Down
Robinhood, which went accessible in July at a amount of $38, saw its amount aiguille at $85 per allotment afore falling to a bare $10 per share.
In a blog post, Tenev said:
Tenev said the aggregation will advance its artefact drive for the butt of the year and will action cogent new articles spanning brokerage, cryptocurrency, spending, and saving.
The CEO declared that Robinhood was “financially sound,” with $6 billion in banknote on hand.
Robinhood has continued been criticized for its commission-free one-click trading, decidedly back it comes to riskier articles such as options.
The Silicon Valley startup grew rapidly and agitated rivals such as E-Trade and added brokers with its artlessness of use and abridgement of fees, but opponents questioned if it fostered an ailing practice, decidedly amid adolescent and amateur alone investors.
Between 2024 and 2024, Robinhood added its application abject by almost thrice, from 700 to over 3,800.
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However, Tenev acclaimed that the growing cadre generated bombastic positions and added an added band of complexity, bottomward the present layoffs.
“While the best to booty this activity was not easy, it is a affected move to ensure we can abide carrying on our cardinal objectives and advancing our mission to adjust finance,” Tenev explained.
On Thursday, Robinhood is slated to address its first-quarter balance afterwards the market’s close. The blog column fabricated no acknowledgment of those banking findings, save to accompaniment that the aggregation currently has added than $6 billion in banknote on hand.
Meanwhile, based on the company’s banking report, Robinhood’s alive user abject has decreased from 18.8 actor in the third division of aftermost year to 17.2 actor in the best contempo quarter.
