Robinhood Markets Inc. is closing five more of its offices as part of a restructuring program announced in August.
Four of the locations are recent leases that have not been occupied, according to an 8-K filing with the U.S. Securities and Exchange Commission. The financial services giant believes that the new closures will generate additional run-rate savings of around $4 million per quarter between the fourth quarter of 2022 and the first quarter of 2024.
Prior to the announcement on Friday, Robinhood said it would close two other offices and cut 780 jobs, or about 23% of its full-time workforce. The company laid off about 9% of its full-time employees in April after the job cuts marked the second round of layoffs.
Friday's filing said no additional employees were being terminated as a result of the new office closures.
Robinhood expects to spend around $90 million to $105 million in total restructuring related charges, excluding the impact of share-based compensation, up from the previously forecast range of $45 million to $60 million. The company expects to incur the majority of the charges in the third quarter of 2022.
It expects to see a net reversal of share-based compensation of $40 million to $50 million in the third quarter of 2022 as a result of the restructuring.
The commission-free platform played a central role in the retail-traded frenzy during the COVID 19 epidemic, but it has posted declines in revenue in recent months as its customer base has been spooked by rising interest rates and decades-high inflation.
In the second quarter of 2022, Robinhood posted 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 shares are down 46% year to date.