Shares of financial services company Robinhood were down 2 percent in after-hours trading on the company’s quarterly results and announcement to cut down its workforce.
In a Tuesday press statement, the company’s CEO Vlad Tenev announced the company’s intention to reduce its workforce by 23 percent. The lay-off will affect workers in operations, marketing, and program management. The CEO in his release blamed the decision on “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”
The latest reduction in its workforce follows after the company laid off 9 percent of its workforce in April. “I want to acknowledge how unsettling these types of changes are,” the CEO added.
The CEO also highlighted other things in his press release, like the company flattening out its organization structure to give new general managers wider responsibility for its business. Affected employees would receive a Slack message letting them know if they were being retained or let go of, he said.
For the second quarter, the company reported revenue of $318 million which was below the estimate of analysts. Analysts expected revenue of $321 million, according to Refinitiv. The company also reported a loss of 34 cents per share compared to a loss of 37 cents that analysts had forecasted, according to Refinitiv.
The company’s net revenue of $318 million was up from the $219 million it reported in the first quarter. An increase in cryptocurrency activities, as well as net interest, helped boost revenue. Second quarter revenue was, however, a drop from the $565 million the company reported in the same period a year ago.
The company also had a decline in monthly active users and the assets under its custody. There has been quite a sharp decline compared to pandemic periods.
Robinhood shares are down 48 percent since this year.