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Robinhood Markets announced it would lay off 9 percent of its full-time employees to reduce the number of “duplicate” jobs at retail brokerage.

Just two days before the first-quarter results were released, CEO Vlad Tenev announced the layoffs, saying the company’s “hyper-growth period” in 2020 and the first half of 2021 had resulted in its headcount increasing. from 700 to almost 3,800.

During this phase, thanks to the stay-at-home nature of the pandemic and the “meme shares” craze, Robinhood increased its net funded accounts from 5 million to 22 million.

“This rapid headcount growth has led to some duplicate job roles and functions, and more layering and complexity than is optimal,” Tenev wrote in a blog post Tuesday afternoon.

Robinhood had 3,800 full-time employees as of December 31, 2021, according to its latest 10-K filing with the US Securities and Exchange Commission.

Tenev said the decision to lay off 340 workers was “not an easy one” but was a “deliberate step” to make sure the company improved its efficiency and responded to changing customer needs.

Robinhood would introduce new products this year in its brokerage, cryptocurrency, and spending and saving categories, Tenev said.

Last week, Robinhood agreed to buy UK crypto firm Ziglu as part of an effort to expand beyond stock trading and make a second attempt to break into the UK market.

Robinhood reports earnings after the closing bell on Thursday, nearly nine months since it floated on the Nasdaq.

Analysts expect a net loss of $310.6 million on revenue of nearly $356 million, according to a Refinitiv survey. The company said in February that it expected first-quarter revenue to be less than $340 million.

The shares, which closed at a record low of $10 on Tuesday, fell another 5.5 percent in after-hours trading.

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