“Last year, we staffed many of our operational functions assuming that the heightened retail engagement we had seen with stock and crypto markets in the COVID era would persist well into 2022,” he said. writes Tenev in a message to employees. “In this new environment, we are operating with more staff than necessary.”
He added, “As CEO, I have endorsed and taken responsibility for our ambitious staffing trajectory – it’s on me.”
The layoffs will affect employees across all functions of the business, with operations, marketing and program management positions hardest hit, he said. The company planned to notify all employees via email and Slack on Tuesday of their status as well as resources if they were affected.
“As its business grew, Robinhood Crypto failed to invest the appropriate resources and attention to develop and maintain a culture of compliance – a failure that resulted in significant violations of the department’s compliance regulations. anti-money laundering and cybersecurity,” Adrienne A. Harris, the department superintendent said in a statement.
Correction: An earlier version of this story misrepresented Robinhood’s custody asset drop percentage. These fell 37% in the second quarter.