The online broker Robinhood has announced drastic staff cuts.
"We are reducing our number of employees by around 23 percent," said company boss Vlad Tenev on Tuesday (local time) in the company blog.
At first, Robinhood did not provide any information on the specific number of terminations.
According to US media, around 780 employees have already been laid off.
In April, Tenev had already announced a nine percent job cut.
"That didn't go far enough," he now explained.
In total, more than 1,000 jobs are to be lost in the two rounds of layoffs.
Robinhood primarily attracts younger investors with commission-free stock and crypto trading.
However, the company has been struggling since the end of the pandemic stock market boom.
The so-called neo-brokers like Robinhood or Trade Republic are struggling with a declining business.
During the pandemic, many people got into stock trading.
But these now hold their shares or have lost interest in securities.
Both lead to reduced income.
Robinhood's share price has therefore fallen sharply in recent months: while the paper was still around $70 shortly after the IPO twelve months ago, it's now $9.23.
Robinhood also published the key figures for the second quarter in advance: After taxes, there was a deficit of 295 million dollars.
Revenue fell 44 percent from the same period last year to $318 million.
The company did pioneering work in the field of commission-free securities trading, its business model is based on the so-called Payment for Order Flow (PFOF).
Robinhood does not trade itself, but sells its customers' orders to so-called market makers, who compete to fill those orders.
This made it possible for Robinhood and many other neo-brokers to offer their services at very low prices or even for free.
Robinhood played an important role in the course capers around the shares of the computer games chain Gamestop last year.