On Tuesday, retail trading platform Robinhood Markets, Inc. announced that it is laying off about 9% of its full-time employees, sending shares down 5% in extended trade.
The company added that the rapid headcount growth has led to duplicate roles and job functions.
Robinhood is set to report its quarterly results later this week.
The company’s total headcount was 3,800 as of December 31.
Robinhood’s easy-use interface became popular among young investors trading from home on cryptocurrencies and stocks such as GameStop Corp. during the COVID-19 pandemic.
“We will continue to accelerate our product momentum through 2022 and will introduce key new products across brokerage, crypto and spending/saving,” Chief Executive Officer Vlad Tenev wrote in a blog post.
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