Robinhood trading app co-founder Vlad Tenev
announced on Tuesday that the company is laying off 9% of its full-time
employees.
Robinhood trading app co-founder Vlad Tenev announced on Tuesday that the company is laying off 9% of its full-time employees. Shortly after this, the company's shares fell down and the price of one share was only $ 10 (about Rs 700). It was only 12 cents above its lowest level.
Valad told through a blog post that the company grew very rapidly from 2019 to 2021. Its net funded accounts increased from 50 lakhs to 2 crores 20 lakhs. The company's revenue increased from $278 million (Rs 21 billion) to $1.8 billion (Rs 1.37 trillion). With this the number of employees of the company increased from 700 to 3800. As a result, many positions and roles were duplicated in the company. Due to all this, the efficiency of the company started getting affected and it was decided to lay off the employees.
Valad said that implementing this decision was a difficult task. This step has been taken deliberately, to ensure that we are as committed to our goals and mission as we are and to work relentlessly to democratize finance. The company said it would continue its global expansion and introduce new brokerage, crypto and spend/save products.
Robinhood's name shines in the crypto market as the Dodgecoin trading app. Recently, the company accounts for a third of the total Dodgecoin circulation that it holds on behalf of its clients. By comparison, the Grayscale Bitcoin Fund is the largest bitcoin holder, but it only holds 3 percent of the bitcoin circulation it holds on the majority of its clients.
The biggest gainer of the Robinhood app was in the second quarter of 2021 when Dodgecoin reached its all-time high. After that its revenue started declining continuously. Recently the company announced the Bitcoin Lightning Network. However, the company's CEO believes that DodgeCoin could become the currency of the future for people and the Internet.
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