“Last year, we staffed many of our operations functions under the assumption that the increased retail engagement we had seen with the equity and crypto markets in the COVID era would persist into 2022,” Tenev wrote in a memo to employees. “In this new environment, we are operating with more staffing than is appropriate.”
He added: “As CEO I approved and took responsibility for our ambitious staffing trajectory – this is on me.”
The redundancies will affect employees across all functions in the company, with operations, marketing and program management positions 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 the business grew, Robinhood Crypto failed to invest the necessary 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 cyber security regulations,” said Adrienne A. Harris. This is what the department’s chief physician says in a statement.
Correction: An earlier version of this story misstated the percentage decline in Robinhood’s assets under custody. These fell by 37% in the second quarter.