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On Tuesday, stock prices plummeted for Robinhood as the company announced plans to cut 9% of full-time employees.

During the pandemic, the online-trading platform added  approximately 3,100 jobs as the trading app's popularity surged among a new generation of investors eager to learn the ropes of investing during lockdown. This saw Robinhood grow from roughly 700 workers to almost 3,800 since 2020.

“This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal,” CEO Vlad Tenev wrote. “After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers.”

Following the news, Robinhood's shares decreased by 2.6% in after-hours trading. The stock ended Tuesday at the lowest closing price — $10 — since last July, when the company first went public. Robinhood company's stock prices have been volatile this year, decreasing 43.6 percent.

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So far, Robinhood's balance sheet still shows over $6 billion in cash. According to FactSet, it had over $8 billion in cash and equivalents last December.

Crypto services have been a booming sector for the company, helping drive a large bump in revenue. Last year, the company logged $419 million in crypto transactions, a more than 1,400% increase from 2020. And in the second quarter of 2021, 41% of Robinhood’s total revenue stemmed from cryptocurrencies.  

In April, Robinhood took over the UK crypto firm Ziglu to shore up its crypto offerings and expand into overseas markets, which the company hopes to continue to do this year. Robinhood also finally released its much-anticipated crypto wallet to 2 million customers on a waitlist. Users can trade with popular memecoins like Shiba Inu and Dogecoin.

Earlier this March, Robinhood also announced a new card enabling automatic investments in cryptocurrencies. In new rewards bonuses, Robinhood said it would enable weekly stock or crypto bonuses by rounding up paychecks to the nearest dollar, and offering 10% to 100% on the paychecks.

"With the new Cash Card, we’ll be there with them when they spend on their daily needs—from morning coffee to weekend groceries—and help them build their investing habits for their future along the way," the company said.