Retail brokerage firm Robinhood is cutting back staffing levels, citing “duplicate roles and job functions” after rapid expansion last year.
CEO Vlad Tenev made the announcement in a blogpost on Tuesday afternoon. Shares fell more than 4% in extended trading.
“We determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers,” Tenev wrote.
“While the decision to undertake this action wasn’t easy, it is a deliberate step to ensure we are able to continue delivering on our strategic goals and furthering our mission to democratize finance.”
Robinhood is scheduled to release its first quarter results after the bell on Thursday. The blog post did mention those financial results other than saying that the company has more than $6 billion in cash on its balance sheet.
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