CHARLOTTE — Stock-trading app service Robinhood is closing its Charlotte office and laying off dozens of workers, according to a letter obtained by Channel 9 Thursday.
Robinhood sent a letter to the state saying effective Oct. 1, the company is laying off 82 people.
Channel 9 learned Thursday that the move is part of Robinhood’s restructuring after reducing its head count by 23% throughout the company.
The office opened just last year in a building on South Tryon Street. Robinhood initially said they would invest $11 million and bring hundreds of jobs to the Queen City. The city and state has also offered millions in incentives to lure the company.
Councilman Tariq Bokhari has a background in fintech and said the city and state negotiated a strong deal. The state’s $3 million and the city’s $157,000 hinged on job creation and investment.
If the goals aren’t met, the dollars aren’t approved.
“We are not out a dime until the companies fulfill their obligations,” Bokhari said.
In a blog post on Tuesday, the company cited high inflation and the recent cryptocurrency crash as reasons for the layoffs.
The reduction of about 780 total jobs follows another round of layoffs announced earlier this year, which cut 9% of its workforce and “did not go far enough” in cutting costs, CEO Vlad Tenev said in the blog post.
“As part of a broader company reorganization, we have decided to close our office in Charlotte,” the company said in a statement. “Employees in Charlotte who remain with Robinhood will begin working under our work from anywhere model.”
Bokhari said it’s a tough time for tech companies, but he feels strong about Charlotte’s future. He said Charlotte has the workers, ecosystem and track record for the fintech companied to succeed.
“We are going to take some lumps in this period, but we are the ones I believe are teed up for success,” he said.
For example, the software company Kingsmen announced Thursday that they will be double the size of their headquarters and move to Camp North End. Carolina fintech managing partner Pasha Maher said people shouldn’t panic and that Charlotte will continue to compete with other major cities for these jobs.
“We are going to recruit good companies here. Not all are going to have success, and that is a natural business cycle,” Maher said.
Robinhood’s stock has been mostly tumbling since its debut last year, The Associated Press reported. It has nearly halved so far in 2022 and closed Tuesday at $9.23, up 2.1% for the day. It slipped nearly 1% in after-hours trading.
The Associated Press contributed to this article.
(Watch coverage on Robinhood’s expected move to Charlotte in the video below)
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