CEO Vlad Tenev says soaring inflation and cryptocurrency crash is discouraging customers from trading.
it is cutting 780 employees, or about 23% of its full-time staff, amid a slump in transactions and ongoing losses.
Robinhood said its transaction-based revenue — money it earns when customers trade stocks, options or cryptocurrencies — plunged from a year earlier, when many retail investorsand asset values were high. Revenue from transactions at the company more than halved to $202 million in the quarter ended June 30, compared with $451 million a year earlier.
Robinhood's stock has shed about 50% of its value so far this year; it fell 2.3% after markets closed Tuesday to $9.92. The cuts mark the second round of layoffs this year for Robinhood, which previously shed 9% of its workers, as its business copes with a decline in equities and a"on Tuesday, Robinhood CEO Vlad Tenev blamed"inflation at 40-year highs accompanied by a broad crypto market crash" for the company's financial woes.
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