As the US prepares for a recession, more companies announce massive layoffs; Robinhood slashes an additional 23% of its staff

Posted 6 days ago


Slowing business growth and economic recession fears are forcing corporations to find cost-cutting solutions. As a result, the summer of 2022 has become the season of massive nationwide job cuts.

Robinhood, a California-based financial service company, is the latest organization to announce staff cuts. On Tuesday, Robinhood reported that it would be slashing an additional 23% of its workforce. In April, the company laid off 9% of its staff.

CEO Vlad Tenev blamed rising inflation and a drop in user activity. Customers of Robinhood use the platform to buy and sell stocks, but Americans have reduced their trading activity because of recession fears.

Vlad stated in a press release on Tuesday that since the layoffs in April, “we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody.”

Oracle, a computer technology firm, has also started laying off staff on its marketing, sales, and customer experience teams. While Oracle has not reported the total number of staff it plans to let go, the Independent speculated that it could be thousands.... (Read more)