TL; DR Breakdown
- Robinhood axes 9% of its staff
- The company housed more than 3,700 staff
- Robinhood plans big for the future
Robinhood, a famous retail trading company, has announced that it has axed about 9% of its staff strength. Following a below-par performance of the company’s token, which plunged to an all-time low, it had to take this measure. The native stock of Robinhood, HOOD, has over the past one month, declined roughly 38%. According to records, this is the lowest ever trading price of the stock since the IPO launch back in the middle of 2021.
Robinhood had more than 3,700 staff
Records also show that this present decline follows a pattern of the same trend but on an all-time basis. Following that and the metric available on TradingView, the token has continually lost some value since it touched an all-time high in August 2021. Notably, the token saw commendable progress after its launch as the token took off to a flying start, cementing an all-time high of $70 in the market.
The new update was made available on the platform’s blog with the news delivered by the boss, Vlad Tenev. Tenev pointed out that following a massive onboarding of new staff across 2020 and 2021, the company enlisted more than 3,700 staff from its previous 700. However, the co-founder noted that there were too many tasks that the company no longer needed people handling.
Robinhood plans big for the future
Tenev mentioned that the previous staff strength saw more people performing the same tasks. While he considers optimism hard to achieve, he said the company needed to reduce the staff to achieve efficiency. Finally, he noted that should the company need to hire anyone in any of their openings, they will employ exceptional talents. In the same post, the company said it is well equipped for the future while stating the massive $6 billion on its balance sheet.
The company also promises users that they will continue to research and develop exciting products to help them achieve their aim in the crypto market. Robinhood saw a massive inflow of $1.82 billion over last year, with most of the profits coming from its crypto arm. Overall, the company gained about $419 million from digital assets only, 1451% from the previous year. Since the start of the year, the company has been working tirelessly to bolster further the figure with the expansion of the number of assets it currently supports.
One such move was the acquisition of Ziglu, which signaled a push into the British and European markets. The platform also finally rolled out its long-awaited wallet, which had more than 2 million users join the waitlist when it was announced. Furthermore, there was a listing of Shiba Inu on the platform with plans to finally integrate Bitcoin’s layer-two lightning network.