Robinhood cutting workforce by 23%

Robinhood Markets is laying off about 23% of its employees, sending its shares down more than 3% in extended trading

Retail trading platform Robinhood Markets Inc said on Tuesday it is laying off about 23% of its employees, sending its shares down more than 3% in extended trading.

The company is also changing its organizational structure to "drive greater cost discipline," Robinhood Chief Executive Officer Vlad Tenev said in a blog post.

Robinhood had already slashed 9% of its workforce in April, saying the company's growth had led to some duplicate roles and job functions. Tenev said Tuesday that those cuts did not go far enough.

"As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me," Tenev said.

Robinhood's easy-to-use interface made it a hit among young investors trading from home on cryptocurrencies and stocks such as GameStop Corp during the COVID-19 pandemic.

However, the company has posted declines in revenue as its customer base has been spooked by rising interest rates and decades-high inflation.