Robinhood is set to lay off nearly a quarter of its workforce as tech layoffs continue.

Robinhood, which saw significant growth last year through commission-free stock trading, is cutting 23% of its workforce after active users and revenue declined over the past three months.

The Menlo Park company will cut more than 1,000 jobs this year after previously laying off 9 percent of its nearly 3,900 employees in April. Second quarter revenue fell 44 percent to $318 million and monthly active users fell 34 percent to 14 million from last year. The company lost $295 million in the second quarter, down from $392 million in the first quarter.

Stock enthusiasts flocked to the company’s app last year, putting Gamestop shares under pressure last year. It faced backlash after temporarily banning trading of the game’s retail stock, but Robinhood faces more challenges this year.

High inflation, turmoil in the stock market and the cryptocurrency crash have dampened user activity, forcing the company to cut costs after rapid growth. The company By the end of 2019, it had increased its workforce to more than 700 employees.

CEO Vlad Tenev said in a statement: “We have made many of our operations with the expectation that the high retail participation we saw in the stock and cryptocurrency markets last year during the Covid era will continue into 2022. “We are overstaffing in this new environment.”

Laid-off employees may remain with the company until October 1. In addition, Tenev said that they will be given financial aid and job search assistance.

Financial technology companies have seen major job cuts this year, including cryptocurrency exchange Coinbase and mortgage company Other tech companies that saw huge growth during the pandemic, such as Netflix and Twitter, have cut staff amid the broader economic downturn.

Shares of Robin Hood were down 1.4% after the market closed and are more than 83% below the company’s peak share price of $55, reached last August, a week after the company’s initial public offering.

Separately, New York state officials on Tuesday fined the company’s cryptocurrency division $30 million for violating rules governing money laundering and cybersecurity.

Roland Lee is a staff writer for the San Francisco Chronicle. Email: Twitter: @rolandlisf

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