The company of the trading app, Robinhood, has had to deliver some bad news to almost a quarter of its employees. Due to dwindling crypto rates and huge inflation rates, it doesn’t have the financial capacity to hold as much staff as it does. This will be the second time this year that it decided to lay off some of its members.
CEO Vlad Tenev admitted that he was partly to blame for what happened. When Robinhood rose in stocks and value, the company envisioned plenty of investors flocking its way. It was during the early stages of the pandemic when members were trading left, right, and center and providing loads of revenue for the company.
However, the latest blog revealed that Robinhood had made a tremendous miscalculation, or prediction, about how many employees it would need for the road ahead. Now, about 23% of the employees will no longer have jobs by later this year. It’s giving them until October to find something new.
“This change will flatten hierarchies, reduce cross-functional dependencies, and remove redundant roles and positions.”
It’s incredibly sad to hear that your position has become redundant and is no longer needed. Based on my experience in corporate environments, it sounds like they’ll be asking those that remain to take on more than one role, which means more work with probably the same pay. That’s usually what happens in businesses that either need to sink or swim.
With the crypto market crashing recently, it will be interesting to see how Robinhood manages to cope with all the changes. Also, it makes one wonder what will happens when things improve, and if Tenev has learned his lesson about employing too many people when the going gets good.