Online brokerage firm Robinhood is laying off almost a quarter of its employees.
Robinhood blamed the lay offs on the worsening macro environment and the hard biting crypto winter.
Robinhood’s co-founder and CEO Vlad Tenev announced the layoffs in a blog post.
Earlier, Robinhood had released lukewarm Q2 financial results and had suffered a $30 million fine from the New York State Department of Financial Services due to alleged Anti-Money Laundering, cybersecurity and consumer protection violations.
The layoffs would impact all functions in the company, particularly operations, marketing, and program management, according to Tenev.
A Financial Times estimate has it that about 780 employees are affected.
Robinhood had laid off 9% of its staff earlier this year.
Tenev pointed to economic conditions and the collapse of the crypto market as factors in the move.
Tenev also admitted that the company had wrongly assumed the traction seen during the beginning of the COVID-19 pandemic would continue.
Robinhood also posted poor quarterly financial results.
The company saw $318 million in net revenue, down 44% year-on-year, although up 6% over the last quarter.
Net loss was $295 million, narrowed from a net loss of $502 million in Q2 2021.
Monthly active users were down 1.9 million from last quarter to 14.0 million in June, and assets under custody dropped 31% to $64.2 billion in that time.
Yet, revenue from cryptocurrency rose 7% quarter-on-quarter to $58 million.