Robinhood Announces Layoffs, Cutting 7% of Full-Time Workforce, Reports Say

Robinhood Markets, the online brokerage firm, is reportedly planning to lay off approximately 150 full-time employees, representing 7% of its workforce, in its third round of layoffs within a span of just over a year.

The decision to downsize was communicated in an internal company message, as revealed by The Wall Street Journal. According to the message allegedly written by Robinhood’s Chief Financial Officer Jason Warnick, the staff cuts are aimed at “adjusting to volumes and better aligning team structures.”

Although a Robinhood spokesperson did not explicitly confirm the reported layoffs when approached by Cointelegraph, they stated that the company is committed to operational excellence and that teams may make changes based on various factors such as workload, volume, and organizational design.

The news of the layoffs comes shortly after Robinhood’s acquisition of credit card firm X1 for $95 million. In 2021, the company downsized its workforce by 9% in April and an additional 23% in August, driven by a decrease in trading activity and declining prices of equities and cryptocurrencies, which impacted its profit margins.

Source: Robinhood

These previous layoffs resulted in more than 1,000 employees being let go. During the second quarter of 2021, Robinhood reached its peak with 21.3 million active users and over $565 million in revenue. However, recent financial reports for Q1 2023 revealed a 44% decline in monthly active users and a 30% year-over-year decrease in revenue.

Despite the challenges, Robinhood’s shares have experienced some positive movement, currently trading at $9.63, representing an 18% increase for the year. However, they have dropped more than 82% from their all-time high achieved in August 2021.

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