Robinhood Shares Drop 6% After Making Significant Job Cuts
Robinhood (NASDAQ:HOOD) shares dropped 6% after-hours after the company announced it is cutting around 9% of its full-time employees.
The company provided its rationale behind this decision. It went through a period of hyper-growth throughout 2020 and H1/21, growing its headcount almost 6 times from 700 to nearly 3800. This has led to some duplicate roles and job functions.
After careful consideration of all factors, the company decided that cutting 9% of its employees is the right decision to improve efficiency.
Shares of Robinhood were down 44% year-to-date even before the after-hours swoon.
By Davit Kirakosyan