Popular trading platform Robinhood has laid off 9% of its staff amid a fire sale of its shares, sending HOOD to an all-time low.
In the past 30 days alone, HOOD has tanked about 38% to sit at $9.99 at the time of writing, marking its lowest price since its initial public offering (IPO) launch in mid-2021.
The drop is part of a longer-term bearish trend that has seen the price of HOOD fall continuously since its all-time high of around $70.39 on August 4, 2021 according to TradingView.
Robinhood publicly announced its staffing adjustment via an April 26 blog post by CEO and co-founder Vlad Tenev. He noted that after a “period of hypergrowth” between 2020 and H1 2021, the company’s workforce had grown nearly sixfold, from 700 to nearly 3,800 employees.
However, Tenev suggested that too many positions at the company have since become obsolete, stating that:
“This rapid staff growth has resulted in a number of dual roles and function functions, and more layers and complexity than is optimal. After carefully considering all of these factors, we determined it was the right decision to pass these reductions on to Robinhood’s workforce to improve efficiency.”
“We will retain and continue to hire exceptional talent in key roles and provide additional learning and career growth opportunities for our employees,” he added.
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Crypto to boost recovery?
Going forward, Robinhood stated in the announcement that it is well-positioned for the future with more than $6 billion in cash on its balance sheet, while also noting that it will continue to introduce “key new products in the brokerage space.” , Crypto and Spending / Saving” in 2022.
The company’s total revenue last year was $1.82 billion, an 89% increase from 2020, and a significant portion of Robinhood’s performance was driven by crypto services revenue.
Crypto transaction revenue was $419 million in 2021, an increase of a whopping 1451% compared to the previous year. In the second quarter of 2021 in particular, crypto accounted for 41% of Robinhood’s total revenue, but it’s worth noting that the figure fell to about 13% in the fourth quarter.
However, Robinhood doesn’t seem to lose interest in the sector this year and has recently taken a lot of steps to expand its crypto offerings.
On April 19, Cointelegraph reported that Robinhood has acquired British crypto asset firm Ziglu to aid its expansion plans into the UK and European markets, something Tenev emphasized “continues to accelerate” this year.
Earlier this month, Robinhood also rolled out its highly anticipated crypto wallet to 2 million waitlist users, outlined plans to integrate the Lighting Network and mentioned Shiba Inu (SHIB) after months of campaigning from its supporters.