Layoffs are inevitable during the company’s upcoming expansion in 2020 and 2021, according to CEO Vlad Tenev. A quarter of a billion dollars in revenue will be generated by Robin Hood’s net funded accounts by the year 2021. The number of employees at this company grew from 700 to more than 3,800 in the same time period.
After A Period Of Rapid Expansion, Robinhood Has Announced Layoffs
It has been revealed that at least 9% of the full-time employees of Robinhood Markets, Inc. may lose their jobs as a result of the company’s rapid growth during COVID-19 in 2020. The use of apps has increased as a result of lower borrowing rates, economic stimulus, and pandemic restrictions.
Stock in the American retail trading company, which went public in July 2021 at a price of $38 per share, is currently falling even lower. Following an initial peak of $85 per share, the company’s stock began a gradual decline to $10 per share in the following year.
It lost 3.75 percent in today’s market trading, and another 5 percent in extended trading hours. For three years in a row, the company’s workforce grew from 700 to 3,800 people.
The company’s CEO, Vlad Tenev, announced the good news in a company blog post following the meeting. During the company’s 2020 expansion phase, Tenev claims that the creation of specific duplicate roles resulted in an increase in employees and complexity, both of which were detrimental to the overall efficiency of the organization.
According to him, the company weighed its options before deciding to lay off workers. When it came to enhancing efficiency and speed, it was determined that this was the best course of action.
Companies like AMC Inc. and GameStop, as well as for cryptocurrencies like Bitcoin, have all contributed to the rapid growth of Robin Hood in 2020 as a result of the epidemic. During the month of March, the firm announced that it would extend trading hours for its customers by six and a half hours per day, seven days per week.
Robinhood Severance Packages
To help those laid off, Tenev said the company would contact them, provide severance packages, and assist them in finding new employment. As part of a company-wide conference, Tenev outlined the reasoning behind his decision to relocate, stating that the current location had “more layers and complexity than desired.”
When it comes to expanding its workforce, Tenev says, “opportunities for automation” take precedence over everything else. There was “rapid headcount growth” during the pandemic-era boom because of lockdowns, historically low financing rates, and government support.
Between 2020 and the first half of 2021, the number of accounts with net funds increased from 5 million to 22 million, while revenue grew from $278 million to over $1.8 billion during the same period. The company’s workforce grew from 700 to over 3,800 as a result of this expansion.
At the time of writing, Tenev claims that the company has a cash reserve of over $6 billion. Everything you need to know about this new feature in the Workforce has been provided above.