Robinhood to close five offices as part of restructuring program
Last updated on: 01 October,2022 08:57 am
No employees were being laid off as a result of the closures.
(Reuters) - Robinhood Markets Inc (HOOD.O) said on Friday it was closing five more offices, as part of a broader program aimed at changing its organizational structure announced in August.
No employees were being laid off as a result of the closures, it disclosed in a regulatory filing.
The Menlo Park, California-based brokerage said it expects these additional office closures to result in restructuring charges of around $45 million and generate annual run-rate savings of about $4 million per quarter, between the fourth quarter of 2022 and the first quarter of 2024.
Robinhood, which had already slashed 9% of its workforce in April, blaming some duplicate roles and job functions on the company’s growth, said it was laying off about an additional 23% of its employees last month.
The trading platform played a central role in the retail-trading frenzy during the pandemic but it has posted declines in revenue in recent months as its customer base has been spooked by rising interest rates and decades-high inflation.