Robinhood, a stock trading platform, seems to have suffered a glitch in its system as it labeled a stock bankrupt even though it was not. Of course, AMC Entertainment CEO was not very happy about the mishap and took to Twitter to vent.
Not Bankrupt After All
AMC CEO Adam Aron ranted on social media, expressing his displeasure with the mistake that Robinhood made, calling it "ludicrous, so wrong, so irresponsible." The tech executive even stated that they will release their first-quarter earnings, perhaps to prove their cash position.
AMC was alerted by getting multiple reports of the company filing for bankruptcy. The board chairman and CEO further stated that he was "ducking angry about this," calling Robinhood either incompetent or evil, both of which are inexcusable.
I am so Ducking angry about this. They are either incompetent or evil, and either is absolutely inexcusable. Obviously, there is no truth to their postings. Outrageous behavior. I have already asked our lawyers if we can sue the Dastards. #IncompetentEvil https://t.co/HhNswuPeaU
— Adam Aron (@CEOAdam) May 1, 2023
Robinhood clarified on Monday that around 1:45 PM EST, the platform experienced a glitch, calling it a "technical issue." The stock trading platform assured that it was taken down immediately at 1:48 PM EST, although several people had already seen it.
Still, CEO Adam Aron was not backing down saying that the post was not true and implied that they will be taking legal action against Robinhood, calling them "dastards" in the process. There are still no reports on whether the CEO would go through with the lawsuit.
Although CEO Aron appears to be very angry about the mistake, AMC wasn't actually that much affected by the technical issue, if not at all. It actually reached the same earnings it had back at the beginning of March, as mentioned by Gizmodo.
Despite that, reports say that the company has actually seen net losses of $288 million in the fourth quarter of 2022, a false banner of bankruptcy might not help AMC Entertainment's situation regarding the matter.
Robinhood's 2022 Layoffs
This issue is a small thing compared to what the trading platform has gone through lately. In early August 2022, Robinhood laid off a huge chunk of its staff during the widespread reduction of employees in the tech industry.
Initially, Robinhood terminated the jobs of full-time staff, accounting for 9% of its workforce. It was followed by laying off 23% more in just three months, resulting in the unemployment of 713 workers out of the company's total of 3,100.
Robinhood CEO and co-founder Vlad Tenev claimed responsibility for the layoffs, saying that they overhired in 2021 during the height of tech industry operations due to the pandemic. He assumed that it would continue through 2022, which it did not.
While many employees were impacted, most were in the company's operations, marketing, and program management functions, as mentioned in Tech Crunch. Tenev said that as the CEO, he "approved and took responsibility for our ambitious staffing trajectory."
It's quite possible that the company would conduct another round of layoffs if it did not fare well this 2023, especially since Robinhood CEO Tenev said so himself that they did not go far enough with the second round of layoffs.
