Robinhood Markets Inc said on Tuesday it was cutting 23% of its staff as it posted a 44% drop in revenue due to the collapse in trading activity, in a surprise earnings announcement that took place a day earlier than expected.

The company said it will also undergo internal restructuring, which will see chief executives take responsibility for individual companies. This reorganization will cost the company between $30 million and $40 million, Robinhood revealed in a filing.

The Menlo Park, Calif.-based brokerage reported net revenue for the second quarter ended June 30 of $318 million, as revenue from stock, options and crypto trading more than fell. half, from $565 million a year earlier, according to a filing with US Securities. and exchange commission.

The company reported a net loss of $295 million, or 34 cents per diluted share, compared to a net loss of $502 million, or $2.16 per diluted share, in the second quarter of 2021.

Robinhood also announced on Tuesday that it would begin a new round of layoffs affecting 780 employees and change its organizational structure to foster greater cost discipline. Robinhood’s total operating expenses for the second quarter increased by 22% compared to the same period last year. It was originally due to release its results on August 3, but released them a day earlier after posting a blog post about the job cuts and reorganization.

The company is one of several fintech companies that began cutting jobs ahead of an expected recession, alongside crypto exchange Coinbase Global Inc., buy-it-now firm Klarna and the platform. form NFT OpenSea, while a handful of crypto companies including Celsius Network and Voyager Digital collapsed amid the broader crypto crash.

Robinhood previously laid off 9% of its full-time staff earlier this year. Robinhood chief executive Vlad Tenev said in a blog post on Tuesday that those earlier cuts hadn’t gone far enough. “As CEO, I have endorsed and taken responsibility for our ambitious staffing trajectory – it’s on me,” Tenev said.

Robinhood’s easy-to-use interface has made it a hit with young investors trading from home in cryptocurrencies and stocks such as GameStop Corp during the COVID-19 pandemic.

However, the company’s clientele has been spooked by rising interest rates and high inflation for decades. Trading-based revenue across Robinhood’s three main lines of business, namely options, stocks and cryptocurrencies, fell 55%, as revenue from crypto trading, which had dampened the company’s results last year fell 75% year-over-year.

Robinhood’s monthly active users also appeared to fall by around a third, to 14 million for June 2022, from 21.3 million in the second quarter of 2021. Fintech stocks were weighed down by a broader market decline due of a risky environment associated with higher funding. costs and slow e-commerce growth have led merchants to pull out of the high-growth tech so far this year

Shares of Robinhood, which sold for $38 a share in its initial public offering last year, were also caught in the crosshairs of a crypto meltdown and lost nearly 88%. Shares of the company are now at $9.23.

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