{"id":1166473,"date":"2022-08-04T16:03:08","date_gmt":"2022-08-04T16:03:08","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/08\/04\/23-staff-cut-off-as-crypto-market-dives\/"},"modified":"2022-08-04T16:03:08","modified_gmt":"2022-08-04T16:03:08","slug":"23-staff-cut-off-as-crypto-market-dives","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/08\/04\/23-staff-cut-off-as-crypto-market-dives\/","title":{"rendered":"23% staff cut off as crypto market dives"},"content":{"rendered":"

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Cryptocurrency \/ Credit: GETTY IMAGES<\/figcaption><\/figure>\n<\/div>\n

Trading platform Robinhood is cutting nearly a quarter of its staff due to high inflation and the falling cryptocurrency market.<\/p>\n

The company said the economic climate had reduced trading activity, which had boomed at the height of the pandemic.<\/p>\n

The move comes after the firm reported quarterly revenues of $318m (\u00a3260m), 44% down on $565m a year earlier.<\/p>\n

In April, the firm slashed 9% of its workforce, which its boss Vlad Tenev said \u201cdid not go far enough\u201d.<\/p>\n

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\u201cLast year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the Covid era would persist into 2022,\u201d said Mr Tenev.<\/p>\n

\u201cIn this new environment, we are operating with more staffing than appropriate. As CEO, I approved and took responsibility for our ambitious staffing trajectory \u2013 this is on me.\u201d<\/p>\n

The latest cuts will affect 780 members of staff, and come in addition to the cuts announced earlier this year.<\/p>\n

Mr Tenev said all staff would receive \u201can email and a Slack message with your status \u2013 with resources and support if you are leaving\u201d.<\/p>\n

He added workers, called \u201cRobinhoodies\u201d in the California-based company, would be able to stay in position until 1 October, be offered a severance package and given help in searching for another job.<\/p>\n

\u201cWe know that this news is tough for all Robinhoodies, and we are also offering wellness support to those who would like it,\u201d he said.<\/p>\n

Robinhood\u2019s commission-free trading proved hugely popular with amateur traders during the Covid lockdowns, which saw the number of account holders double.<\/p>\n

But its customer base has been spooked by the cost of living rising and higher interest rates, which have hit global markets and sent cryptocurrencies slumping.<\/p>\n

Its monthly active users also appeared to fall by roughly a third, at 14 million for June 2022 compared with 21.3 million in the second quarter of 2021, Reuters reported.<\/p>\n

The online brokerage\u2019s mission is to \u201cdemocratise finance for all\u201d, but it hit the headlines in January 2021 for restricting the buying of shares in the US games firm GameStop,\u00a0which caused outrage among Americans buying the company\u2019s stock with the aim of pushing up the price.<\/p>\n

Mr Tenev apologised to customers at a US congressional hearing in which\u00a0lawmakers said the move had raised questions about fairness in financial markets.<\/p>\n

The platform has also faced criticism for exposing amateurs to risky products such as meme stocks \u2013 shares which become popular via social media \u2013 and cryptocurrencies.<\/p>\n

The company said in its drive for \u201cgreater cost discipline\u201d it would restructure the organisation by having general managers taking up \u201cbroad responsibility\u201d for its individual businesses.<\/p>\n

Mr Tenev said the change would \u201cflatten hierarchies\u201d and \u201cremove redundant roles and positions\u201d.<\/p>\n

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