- Robinhood’s overall revenue was $1.82 billion, up 89 percent from 2020, and money produced from crypto services contributed significantly to the company’s success.
- The drop is part of a longer-term negative trend in which the price of HOOD has been steadily declining from its all-time high of about $70.39 on August 4, 2021. Vlad Tenev, CEO and co-founder of Robinhood, revealed the reorganization in a blog post on Tuesday.
- Crypto transaction revenue totaled $419 million, an increase of 1451 percent over the previous year. In the second quarter of 2021, crypto accounted for 41% of Robinhood’s overall revenue. It’s worth noting, though, that by Q4, the figure had reduced to roughly 13%.
We felt that reducing Robinhood’s employees is the best way to enhance productivity, said Vlad Tenev, CEO and co-founder of Robinhood. Robinhood, a popular retail trading platform, has let off 9% of its workers amid a stock firesale that has sent HOOD to all-time lows. HOOD has dropped about 38% in the last 30 days, to $9.99 at the time of writing, the lowest price since the company’s initial public offering (IPO) in mid-2021.
More Than $6 Billion In Cash
According to TradingView, the drop is part of a longer-term negative trend in which the price of HOOD has been steadily declining from it’s all-time high of about $70.39 on August 4, 2021. Vlad Tenev, CEO and co-founder of Robinhood, revealed the reorganization in a blog post on Tuesday. He observed that the firm’s employment had roughly sixfold expanded between 2020 and H1 2021, from 700 to approximately 3800 personnel, following a period of hyper-growth.
Tenev, on the other hand, believes that too many employment roles at the corporation have since become obsolete, claiming that: This quick expansion has resulted in some duplicate positions and job functions, as well as more levels and complexity than is necessary. We determined that reducing Robinhood’s workforce is the best move to boost efficiency after carefully examining all of these aspects.
We will retain and continue to acquire excellent people in important jobs, as well as provide our employees with extra learning and career development opportunities. Moving forward, Robinhood noted in the release that it is well-positioned for the future, with more than $6 billion in cash on hand, and that in 2022, it will continue to introduce important new products across Brokerage, Crypto, and Spending/Saving.
Crypto Transaction Revenue Totalled $419 Million
Last year, Robinhood’s overall revenue was $1.82 billion, up 89 percent from 2020, and money produced from crypto services contributed significantly to the company’s success. In 2021, crypto transaction revenue totaled $419 million, an increase of 1451 percent over the previous year. In the second quarter of 2021, crypto accounted for 41% of Robinhood’s overall revenue. It’s worth noting, though, that by Q4, the figure had reduced to roughly 13%.
This year, Robinhood does not appear to be losing interest in the space, and it has recently made a number of measures aimed at increasing its crypto products. Robinhood purchased British crypto-asset business Ziglu on April 19, according to Cointelegraph, to aid its expansion aspirations into the United Kingdom and European markets, which Tenev stated will continue to speed this year. Robinhood also delivered its much-anticipated crypto wallet to two million waitlisted users earlier this month, announced plans to integrate the Lightning Network, and listed Shiba Inu (SHIB) following months of campaigning by its supporters.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/27/as-the-stock-drops-to-an-all-time-low-robinhood-fires-nearly-one-out-of-every-ten-employees/