An “error” of haste! Again the investment platform American Robinhood shines with its defaults. Make do with your set of saucepans instead outstanding was obviously not on the program at Robinhood. The platform has therefore decided to separate from a substantial part of its employees due to excessive payroll. In fact the company had multiplied by 6 its workforce in the space of a year, driven by a very favorable market. The wave having passed, the employees at Disposable can now have.
An explanatory letter
On April 26, the CEO and co-founder from Robinhood, Vlad Tenevpublishes a letter on the company’s blog in which he explains that approximately 9% of full-time employees will be laid off.
Vlad Tenev explains that throughout 2020 as well as the first half of 2021 Robinhood has experienced a period ofhyper growth following the exceptional economic context. The Covid 19 pandemic having launched a widespread interest in investingand the fiscal stimulus plan accompanied by interest rates close to 0 have had a very significant impact for investment platforms including especially Robinhood. The figures are mentioned and it is an increase of $17 million for net funded accounts and $1.5 billion for Robinhood revenue in the space ofonly a year and a half.
the explosion the number of users and the volume managed by the platform has therefore led to a staff increase to meet the needs generated as explained by the CEO. Robinhood then multiplied its workforce by 6 is 3800 instead of 700. However, this growth in numbers has obviously been a bit rushed against all odds (Nope).
As a result of this change, the company considers that it has created duplication and unnecessarily complicated its functioning/organization. the conclusion is clear for Robinhood : staff reduction is the solution for improve its efficiency, increase your speed and provide impeccable customer service. It is in this sense that nearly 350 employees will see their post vanish now.
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Robinhood does not slow down the canopy
“We will continue to accelerate our product momentum through 2022 and introduce key new products in brokerage, crypto and spend/save. We will retain and continue to hire exceptional talent in key roles and provide additional learning and career growth opportunities for our employees. And of course, our international expansion efforts will continue to accelerate from here. »
Source: blog.robinhood.com
Vlad Tenev announced this decision despite a extremely positive results as to the company’s revenue and do not see these layoffs as significant with a slack. The company draws up a balance sheet of $6 billion in cash nowadays. In order to stay on course, Robinhood believes it is necessary toanticipate and react to changes how their clients invest, particularly in terms of very tense economic and political context. The hour is always international expansion for Robinhood and even with an even greater liveliness from this sad event.
After Gamestop case and his notorious false advertising on its cryptocurrency service offer, Robinhood is embarking on the pump and dump of employees. Despite the some apologies accompanying the letter, it is hard to imagine that Robinhood had not foreseen the turn of events. That said, there is no need to sue because the damage is already done. Fortunately for the unfortunate people concerned, the sector is not lacking in professional opportunities.
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