Robinhood shares jump as brokerage cuts jobs, posts smaller-than-feared loss

This post was originally published on this site

The Menlo Park, California-based company saw revenue fall 44% in the second quarter ended June 30 as trading volumes eased from last year’s frenetic pace when retail investors used its application to pump money into so-called ‘meme stocks’.

The brokerage said it will slash its total headcount by 23% in the backdrop of a looming recession, rising rates and decades-high inflation.

“We believe these cost reductions will likely drive the company to profitability in the near term and could drive shares higher,” Goldman Sachs (NYSE:GS) analysts wrote in a note.

In April, Robinhood had slashed 9% of its total workforce, citing the need to manage expenses.