“Final yr, we staffed lots of our operations features beneath the idea that the heightened retail engagement we had been seeing with the inventory and crypto markets within the COVID period would persist into 2022,” Tenev wrote in a message to workers. “On this new surroundings, we’re working with extra staffing than applicable.”
He added: ” As CEO, I accepted and took duty for our bold staffing trajectory — that is on me.”
The layoffs will have an effect on workers throughout all features of the corporate, with operations, advertising and marketing and program administration positions being the toughest hit, he mentioned. The corporate deliberate to inform all workers by way of electronic mail and Slack on Tuesday with their standing in addition to assets in the event that they have been affected.
“As its enterprise grew, Robinhood Crypto failed to take a position the correct assets and a spotlight to develop and keep a tradition of compliance — a failure that resulted in important violations of the division’s anti-money laundering and cybersecurity laws,” Adrienne A. Harris, the division’s superintendent mentioned in a press release.
Correction: An earlier model of this story misstated the share decline in Robinhood’s property beneath custody. These fell by 37% within the second quarter.