The once-hot investment app Robinhood had a bad week. The company’s crypto division got slapped with a $30 million dollar fine from New York state regulators - they allege Robinhood failed to protect consumers. And in a second round of layoffs, Robinhood let another 23-percent of its staff go:
TAPE: One person who was laid off told Insider that Robinhood has been hemorrhaging money.
That’s Aaron Weinman. He writes Insider’s 10 Things on Wall Street Newsletter.
TAPE: Now, morale among the 2600 remaining employees is grim. The company is likely to focus on more ways to cut costs and CEO Vlad Tenev, admitted that Robinhood hired too many people too soon. He also admitted that Robinhood was not well equipped enough to handle a market downturn.