retail brokerage company Robinhood It underestimates staffing levels, citing “duplication of job roles and positions” after a rapid expansion last year.

CEO Vlad Tenev made the announcement in a blog post on Tuesday afternoon. Shares are down more than 4% in extended trading.

The move will affect about 9% of full-time employees. Robinhood reported 3,800 full-time employees as of December 31.

“We have determined that making these cuts to Robinhood employees is the right decision to improve efficiency, increase our speed and ensure we are responsive to the changing needs of our customers,” Teniff wrote.

“While the decision to take this action was not an easy one, it is a deliberate step to ensure we can continue to achieve our strategic goals and advance our mission to democratize funding,” he added.

Robinhood is due to announce its first-quarter results after the bell rings Thursday. The blog post didn’t mention those financial results other than to say the company has more than $6 billion in cash on its balance sheet.

Going forward, the company will review employee growth plans and “continue to prioritize internal opportunities for automation and operational efficiency,” Tenev wrote.

Robinhood rose to prominence in early 2021 as a major player in the GameStop saga, as retail investors bid for so-called meme shares.

The brokerage saw a surge in new clients and cash and entered the public markets through its IPO in July. However, the stock has gained little traction and has traded below the initial public offering price of $38 per share for most of its existence. Shares closed at $10 on Tuesday.

The company shed monthly active users during the fourth quarter, and first-quarter results will face tough comparisons with GameStop mania in the first quarter of 2021.

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