Robinhood Crypto Exchange Lays Off 23% Of Its Employees

Crypto exchange Robinhood lays off employees. (Robinhood)

JAKARTA – The decline in the crypto market in recent months has caused a shock to the cryptocurrency industry in general. A number of crypto trading and lending companies have laid off, including one of the largest crypto trading, Robinhood.

The crypto trading company was forced to cut about 23% of its employees, the Wall Street Journal reported and confirmed by TechCrunch. In fact, previously Robinhood had cut 9% of its staff.

In April, Robinhood is believed to have let go of 300 employees out of its 3,100 workforce. TechCrunch reports a 23% reduction would amount to about 713 employees at risk of being fired. That means leaving about 2,400 employees working at the company.

Co-founder of crypto exchange Robinhood, Vlad Tenve announced in a blog post, stating that “employees of all functions will be affected, layoffs” mainly concentrated “in the company operations, marketing, and program management functions.”

In the post, Tenev was responsible for Robinhood's over-hiring in the 2021 frenzy. He said the company last year managed many of its operating functions on the assumption that the "increased retail engagement" that ensued would continue in the years to come. 2022.

“In this new environment, we are operating with more staff than we should be,” Tenev wrote.

“As CEO, I approve of and take responsibility for the trajectory of our ambitious staff – this lies with me,” he said.

He considered the previous wave of employee cuts did not go well enough.

“Since then, we have seen additional damage from the macro environment with inflation at a 40-year high accompanied by a broad crypto market crash. This further reduces customer trading activity and held assets,” he wrote.

Robinhood is one of the crypto companies that laid off employees. In addition, there are other companies such as Gemini that have cut about 10% of their workers. Previously, Crypto.com and Coinbase as well as FTX did the same.