Economy, Stock Market and Business News: Latest Updates – The New York Times

by | Aug 2, 2022 | Business

Vlad Tenev, the Robinhood chief executive, on the Nasdaq display last year. “This is on me,” he told employees in a blog post Tuesday, referring to the layoffs.Credit…Sasha Maslov for The New York TimesRobinhood, the trading app that popularized one-click trading and helped fuel last year’s meme stock frenzy, said on Tuesday that it was laying off about 23 percent of its work force.Vlad Tenev, the chief executive of Robinhood, said in a blog post that the layoffs would affect employees across the company, especially those in operations, marketing and program management roles.Robinhood declined to comment on the layoffs.The announcement followed closely on the heels of cuts in April, when Robinhood laid off 340 workers, or about 9 percent of its employees at the time. Since then, Mr. Tenev wrote, further worsening of the economy, including inflation and the crash of the crypto market, has “reduced customer trading activity and assets under custody.” The price of Bitcoin has fallen by more than half this year, to about $23,000 per coin. The cryptocurrency rose as high as $66,000 in late 2021.The layoffs come as part of a wave of job cuts at tech companies, including some cryptocurrency firms. In June, cryptocurrency exchanges including Coinbase and Gemini announced that they were laying off employees. Last week, Shopify, an online marketplace, announced it was cutting 10 percent of its 10,000 employees.In his memo on Tuesday, Mr. Tenev said Robinhood misjudged the economy and trading activity. “As C.E.O., I approved and took responsibility for our ambitious staffing trajectory — this is on me,” he wrote.The company also released its second-quarter results on Tuesday, reporting that its monthly count of active users declined to 14 million in June, a decrease of 1.9 million.The turbulence represents a major comedown for Robinhood, which became a key player in the meme stock craze in early 2021, when investors banded together to drive up the stocks of companies including the video game re …

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