Robinhood Markets cut almost a quarter of its workforce in a broad reorganization after a punishing first year as a public company.
The dismissals, which affect all aspects of the business, are "concentrated in our operations, marketing and program management functions," Chief Executive Officer Vlad Tenev said Tuesday in a statement.
The headcount reductions follow an earlier round in April, when Robinhood eliminated about 9% of its staff. After a pandemic trading boom fueled the firm's drive to an initial public offering in July 2021, business has slumped, with monthly active users on its app declining sharply.
Robinhood also reported second-quarter results a day ahead of schedule, saying its net loss for the period was $295 million, or 34 cents a share.
Shares of Robinhood, which lost about three-quarters of their value since the firm's initial public offering last July, were little changed in extended trading at 4:18 p.m. in New York.
In the reorganization, the company will transition to a model where "general managers" take broad responsibility for parts of the business to get rid of hierarchies, Tenev, 35, said in the statement. He told employees that they would receive a Slack message about their status. Employees affected can stay through Oct. 1.
