Firm that specializes in retail brokerage RobinhoodFollowing rapid growth in the last year, they are cutting down on staffing.

Vlad Tenev, CEO of the company made the announcement via a blog on Tuesday afternoon. In extended trading, shares fell by over 4%

About 9% of full time employees will be affected by the move. Robinhood had 3,800 employees at the end of December 31, which would mean that 9% could be as high as 340, or higher depending on current hiring trends.

Tenev said that Robinhood had made the correct decision in reducing its staff. “This was to increase efficiency, speed up our response time, and to ensure we can be responsive to our customers’ changing needs.”

It was not an easy decision, but it’s a conscious step that will allow us to deliver on our strategic goals as well as further our mission of democratizing finance.

Robinhood will release its quarter-end results on Thursday after the bell. Other than stating that there is more than $6B in cash, the blog didn’t include any financial information.

Robinhood was a prominent player in GameStop’s saga. This is where retailers bought up meme stocks.

After a surge in cash and customers, the brokerage entered the public market through an IPO that took place in July. The stock was not popular and traded at a lower price than its IPO of $38 for most of its life. On Tuesday, shares closed at $10

The company lost monthly active users in its fourth quarter. And, the company’s first-quarter results could be hard to compare with the GameStop mania that erupted in the first three quarters of 2021.

This is the latest news. Stay tuned for new updates.