Trading platform Robinhood is cutting nearly a quarter of its staff due to high inflation and the falling cryptocurrency market.
According to the business, the current economic situation has decreased commercial activity, which had soared at the height of the pandemic.
The action was taken after the company announced quarterly revenues of $318 million (£260 million), a 44% decrease from $565 million a year earlier.
The company cut 9% of its personnel in April, which according to Vlad Tenev, its boss, "did not go far enough."
According to Mr. Tenev, "we staffed many of our operational tasks last year on the premise that the increased retail involvement we had been seeing with the stock and cryptocurrency markets in the Covid era would extend until 2022."
"We are employing more personnel than is necessary for this new environment. It is my fault because, as CEO, I gave my approval and accepted responsibility for our aggressive staffing trajectory."
The most recent layoffs, which are in addition to those that were already announced this year, will affect 780 employees.
All employees, according to Mr. Tenev, would get "an email and a Slack message with your status, along with resources and support if you are leaving."
He said that employees, known as "Robinhoodies" in the California-based company, will be permitted to remain in their positions until 1 October, be provided with a severance package, and get assistance in finding other employment.
We are also providing wellness support to anyone who would like it because we are aware that this news will be difficult for all Robinhoodies, he added.
During the Covid lockdowns, amateur traders found Robinhood's commission-free trading to be incredibly appealing, and the number of account holders doubled.
However, the growing cost of living and higher interest rates, which have affected global markets and sent cryptocurrencies plunging, has democratized and alarmed its customer base.
According to Reuters, the company's monthly active users also appeared to have decreased by around a third, from 21.3 million in the second quarter of 2021 to 14 million in June 2022.
The goal of the online brokerage is to "democratize finance for everybody," but in January 2021, it made news for limiting the purchase of shares in the US gaming business GameStop, which infuriated Americans who were buying the company's stock to drive up the price.
At a US congressional hearing, Mr. Tenev expressed regret to the audience for the action, which, according to the senators, called into doubt the fairness of the financial markets.
The platform has also come under fire for exposing novices to riskier items like cryptocurrency and meme stocks, shares that gain popularity via social media.
To achieve "better cost discipline," the corporation claimed it would restructure the organization and give general managers "wide control" over each of its various operations.
According to Mr. Tenev, the adjustment will "flatten hierarchies" and "eliminate unnecessary functions and responsibilities."
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