Robinhood to close five offices as part of restructuring program
FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly/File Photo
Robinhood Markets Inc 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 per cent 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 per cent 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.
