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posted by janrinok on Friday August 05, @09:11AM   Printer-friendly

Robinhood is nearly $300 million down, lays off a quarter of its staff, and gets hit with $30 million fine:

What just happened? In a case of kicking someone when they're down, Robinhood, the company behind the popular investment app, has been hit with a $30 million fine just as it announced almost a quarter of its staff are being let go and a net loss of $295 million in Q2.

Starting with the staff-cut news, company CEO and co-founder Vlad Tenev announced that Robinhood would reduce its headcount by approximately 23% as part of a broader company reorganization into a General Manager structure.

Tenev said while all parts of the business will be affected, the main areas will be operations, marketing, and program management functions. The move comes just a few months after Robinhood laid off around 9% of its staff in April.

[...] But Robinhood's woes haven't ended there. New York's top financial regulator has fined the company's crypto unit $30 million for alleged violations of anti-money-laundering and cybersecurity regulations.

The Wall Street Journal writes that The New York State Department of Financial Services found significant failures in the company's management and oversight of its compliance programs. A supervisory exam and investigation found Robinhood's Bank Secrecy Act and anti-money-laundering compliance program was insufficiently staffed and failed to move from a manual monitoring system following the company's increase in size.

[...] In addition to the fine, Robinhood must retain an independent consultant to evaluate its actions in addressing the issues highlighted by the regulator.


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  • (Score: 4, Interesting) by Thexalon on Friday August 05, @10:44AM (2 children)

    by Thexalon (636) on Friday August 05, @10:44AM (#1265073)

    I've seen dying companies before. Heck, I've been in a couple over my career. Upper management will fire anybody and everybody trying to get one more paycheck for themselves, in large part they know they are not going to have too many career prospects now that they didn't get out in time. The odds of the company making it are slim to none.

    If you work for them, get out while you still can.

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  • (Score: 2) by Revek on Friday August 05, @11:20AM

    by Revek (5022) on Friday August 05, @11:20AM (#1265076)

    Wall street types are worse in that their motto might as well be 'We will do anything for just one more day'. Vlad would wreck the country to keep his excesses.

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  • (Score: 4, Funny) by Anonymous Coward on Friday August 05, @11:23AM

    by Anonymous Coward on Friday August 05, @11:23AM (#1265077)

    Upper management will fire anybody and everybody trying to get one more paycheck for themselves

    The Sheriff of Nottingham strikes again