Thursday, May 30All That Matters

Robinhood is trying to avoid lay off news by firing employees unfairly


Robinhood is trying to avoid lay off news by firing employees unfairly




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16 Comments

  • MrMoist

    Unfortunately this is all too common amongst tech companies.

    Tech companies always downsize by firing employees due to “performance reasons” after they raise a round of funding, or IPO, because actually doing layoffs looks bad on the company’s financials.

    I’ve been through this several times, startups will straight up hire an additional 100 employees the year before they fundraise, and get a massive investment because “they need to pay the salaries of 100 new engineers”. But after the investment, they fire those 100 employees and line the pockets of upper management with that money instead.

    Likewise, larger companies like Robinhood most definitely hired a bunch of engineers before they IPO so they can IPO at a hiring valuation, just to fire all of them later.

  • ugh_this_sucks__

    Fuck Robinhood. But this video is elaborating a lot from a single vague post on Blind, which is a platform that should basically never be trusted.

    Having PIPs (performance improvement plans) is stock-standard for every tech company. Facebook, Google, Microsoft—they all put people on PIPs (they even call it the same thing) if they perform below average for a year or more.

    Is Robinhood doing this as a way to lay people off because they aren’t doing well as a company? Maybe, but if so it’s an extremely slow and costly way to do it.

    I bet it’s just a stupid plan the head of HR came up with. The timing of it is moronic, and it’s going to blast morale (which I bet was already low), but not sure it’s a way to lay off swaths of people.

    But yeah, fuck that company.

  • imafrk

    who is Citadel courting to sell this asset to? Citadel has made multiples from them, but the only value RH has now is orderflow

  • nisboy2

    I know it’s ha ha fuck Robinhood but it would be shocking if they were at the point of mass layoffs. Like them or hate them they have so much capital. It would take some serious mismanagement to truly be at that point

  • TreadEasily

    Doesn’t this apply to most jobs though? The demand is needed to help fundraise and make it seem like growth is about to explode. But then suddenly growth doesn’t happen, so contracts need to be removed to help save money.

    Similar in sports, how when an athlete doesn’t gel well with the system/the team, their contract gets moved. This usually happens via a buyout or a trade.

  • swagharris31

    Are there any good stock trading/investing apps, that maybe are run by more *ethical* companies? I want to slowly start getting into stocks, but I don’t want to support robinhood.

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