Following a period of hyper-growth, in which its headcount surged to 3,800 from 700, Robinhood Markets (NASDAQ:HOOD) is now letting go of 9% of its full-time employees, in an effort to improve efficiency at the fintech.
"This rapid headcount growth has led to some duplicate roles and job functions and more layers and complexity than are optimal," CEO Vlad Tenev said in a blog post Tuesday.
The reduction of employees won't slow the company's product development efforts, he said. Robinhood (HOOD) will continue to "accelerate our product momentum through 2022 and will introduce key new products across Brokerage, Crypto, and Spending/Saving," Tenev said. In addition, it will continue its international expansion efforts.
The company will continue to hire talent in key roles and provide additional learning and career growth opportunities for its employees, he added.
Tenev maintains that Robinhood (HOOD) is in a strong financial position, with more than $6B in cash on its balance sheet.
Departing employees will receive separation packages, healthcare and job search assistance, Tenev's blog said.