Retail trading platform Robinhood Markets, Inc. announced on Tuesday its decision to lay off about 9% of its full-time employees as shares went down 5% in extended trade.
Robinhood said that the rapid headcount growth has led to duplicate roles and job functions.
The company is set to report its quarterly results later this week.
As of December 31, the company’s total headcount was 3,800.
Robinhood’s convenient interface grew in popularity among young investors trading from home on cryptocurrencies and stocks during the COVID-19 pandemic.
“We will continue to accelerate our product momentum through 2022 and will introduce key new products across brokerage, crypto and spending/saving,” Chief Executive Officer Vlad Tenev wrote in a blog post.