“Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022,” Tenev wrote in a message to employees. “In this new environment, we are operating with more staffing than appropriate.”
He added: “As CEO, I approved and took responsibility for our ambitious staffing trajectory — this is on me.”
The layoffs will affect employees across all functions of the company, with operations, marketing and program management positions being the hardest hit, he said. The company planned to notify all employees via email and Slack on Tuesday with their status as well as resources if they were affected.
“As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance — a failure that resulted in significant violations of the department’s anti-money laundering and cybersecurity regulations,” Adrienne A. Harris, the department’s superintendent said in a statement.
Correction: An earlier version of this story misstated the percentage decline in Robinhood’s assets under custody. Those fell by 37% in the second quarter.