Online broker Robinhood cut staff by 9%. CEO Vlad Tenev described the move as the need to improve efficiency after a $2 billion loss in the previous two quarters.

Throughout 2020 and the first half of 2021, the startup experienced a period of hyper-growth, with the number of non-zero accounts jumping from 5 million to 22 million, rising from $278 million in 2019 to $1.8 billion in 2021. Such dynamics of key indicators required an increase in the number of employees from 700 to almost 3,800 people.

“This rapid growth has led to duplication of some roles and job functions, as well as unnecessary complexity in the structure”said Tenev.

Optimization of the state will guarantee the further implementation of the mission of democratizing finance, he promised. In 2022, Robinhood will launch new products in brokerage, cryptocurrencies and spending/savings and continue its international expansion. The basis for this will be $6 billion on the balance sheet.

In July 2021, the online broker went public with an IPO. Robinhood shares fell 88.8% from their peak. Since the beginning of 2022, its capital has decreased by 46.5%.

The Robinhood app has become popular amid the pandemic and the surge in interest in Dogecoin. Trading with the popular meme token accounted for more than 40% of the company’s revenue in the second quarter of 2021.

Subsequent reports noted a drop in revenue from crypto trading and user activity. Wall Street’s stance on Robinhood stock could also be affected by the risks of an SEC regulation review or a ban on charging for order flow. This practice makes up the lion’s share of the company’s revenue.

Earlier, the CEO of the company, Vlad Tenev, described cryptocurrencies as the basis for future development of Robinhood.

In April 2022, online broker Robinhood expanded its cryptocurrency wallet beta access to 2 million customers and announced plans to integrate the Lightning Network “in the coming months.”

Prior to that, the online broker announced that debit cards with the possibility of getting cashback in digital assets have been replaced by new Cash Cards.