Cryptocurrency investment and trading platform, Robinhood, has announced that they will be laying off 23% of their staff due to surging inflation, the cryptocurrency winter and disappointing Q2 results. This announcement was made by co-founder and CEO, Vlad Tenev who said that the adverse macroeconomic conditions is enough reason for the club to embark on the planned downsizing.

The record inflation in the U.S. and the current crypto winter has reduced customer trading activity and assets custody on their platform. Robinhood’s Q2 results revealed that the firm had a Q2 2022 revenue of $318 Million which is about $3M shy of the estimated $321 Million. The figures are also very much distant from the $565 Million achieved in Q2 2021.

The California-based company had already paid off some of their staff at the beginning of the market downturn earlier in the year. Robinhood was among some of the crypto companies that laid off some staff in April. They let go of 9% of their staff that time because of the bear market and it’s adverse consequences.

Despite the brief retracements, the next few months were disappointing for the digital asset market. This decline, coupled with the rising inflation in the United States, caused a financial drawback for Robinhood which resulted in another redundancy process. In an announcement recently, Tenev disclosed that every fourth employee will be most likely released.

However, Tenev also disclosed that each laid-off member of the organization will still be employed until 1st October 2022. After that date, they will receive regular pay and benefits for an undisclosed period of time. The company has also confirmed that they will also provide cash severance, vision and dental insurance premiums, payment of COBRA medical and assistance when looking for another job.

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