Robinhood attracted retail investors during the pandemic but is facing losses as users leave the platform. In Business Communication and Character, I criticized Robinhood’s aggressive marketing tactics to lure inexperienced investors. Now, the company is doing its second round of layoffs: 9% of staff in April and another 23% in August. Lucky for us, the message to staff is posted on the Robinhood blog—a smart move because notes like are typically leaked, anyway.

Overall, CEO Vlad Tenev’s message meets criteria for bad-news communications. The main point is upfront, as I suggest for layoff messages because employees should know the news already. According to this message, they do: Tenev refers to All-Hands meetings before and after the written message. We get the sense that internal communication has been ongoing and that decisions have been transparent.

The message tells employees what’s next and that they will hear the news quickly: “Everyone will receive an email and a Slack message with your status—with resources and support if you are leaving. We’re sending everyone a message immediately after this meeting so you don’t have to wait for clarity.” The better approach would be individual, in-person (or Zoom) meetings, but this isn’t always practical.

Tenev described part of the reasons for the reductions but omitted a recent $30 million fine and increased regulatory pressure. Yet he demonstrated accountability and humility by admitting bad decisions. He wrote, “As CEO, I approved and took responsibility for our ambitious staffing trajectory—this is on me.” In addition, on a press call, Tenev admitted, “The reality is that we over-hired, in particular in some of our support functions.”

Tenev also demonstrated compassion. He sounds human, saying goodbye to people who will leave and encouraging people who will stay, without being too positive, which could be off-putting.

In sum, this isn’t the best layoff message example we have, but it’s certainly not the worst. I would share this with students as a positive example.