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Robinhood stock rises after the brokerage cuts jobs and reports a smaller-than-expected loss

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Robinhood Markets shares jumped more than 13% on Wednesday after the brokerage announced job cuts and reported a smaller-than-expected quarterly loss.

Revenue fell 44 percent in the second quarter ended June 30 at the Menlo Park, California-based company.

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Investors, on the other hand, applauded Robinhood’s decision to cut costs through another round of layoffs, which will reduce its headcount by 23%.

Robinhood lost $295 million in the second quarter, compared to analyst expectations of a loss of 37 cents per share.

The layoffs are part of the company’s efforts to cut costs in the face of a risk-off environment and slowing e-commerce growth.

Robinhood’s stock has dropped more than 70% since its initial public offering last year. Some analysts interpreted the news as a sign that Robinhood is on its way to profitability.