Robinhood fires 23 per cent staff after crypto tumble and stock slowdown

While most companies have stated high inflation and restructuring teams for better output as reasons behind sacking people, Robinhood’s CEO Vlad Tenev is saying that record inflation and a big crypto market crash are some of the reasons behind the latest move.

Several companies are cutting down their workforce as the world is fearing a recession storm that could hit soon. Robinhood is the latest company to announce the layoff of its employees. The company has stated that it is planning to sack 23 percent of its staff. This is not the first for the company and Robinhood has already laid off 9 percent of its workforce in April this year.

While most companies have stated high inflation and restructuring teams for better output as reasons behind sacking people, Robinhood’s CEO Vlad Tenev is saying that record inflation and a big crypto market crash are some of the reasons behind the latest move. He revealed that the layoffs are being done in the company’s operations, marketing, and program management departments.

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

The latest “change will flatten hierarchies, reduce cross-functional dependencies, and remove redundant roles and positions,” he further stated. The company will send an email to the employees that will get sacked or it could also drop a message on Slack. The affected employees will reportedly get to stay with the company until October 1, as per the report.

Besides, Google is also expected to sack some employees in the near future, as the company first announced that it is slowing down the hiring for this year and then stated that it is freezing hiring for at least two weeks. The reason behind this is that Google’s CEO Sunda Pichai is not happy 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 not a lot of them work efficiently.

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