Robinhood Markets Announces Third Round of Layoffs
Robinhood Markets is laying off 7% of its workforce in its third round of layoffs in just over a year.
Online brokerage firm Robinhood Markets will reportedly lay off roughly 150 full-time staff — 7% of its total workforce — in its third round of layoffs in just over a year.
According to an internal company message seen by The Wall Street Journal, Robinhood Chief Financial Officer Jason Warnick reportedly wrote that the cuts were being made to “adjust to volumes and to better align team structures.” A Robinhood spokesperson did not confirm or deny the layoffs in comments to Cointelegraph, but stated: “We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload, org design, and more.”
The reported layoffs come just five days after Robinhood acquired credit card firm X1 in a $95 million deal. Last year, Robinhood cut its total headcount by 9% in April and let go of 23% of its remaining staff in August as a decline in trading activity and subdued prices of equities and cryptocurrencies saw profit margins shrink. The two cuts accounted for the loss of more than 1,000 staff.
At its peak, in the second quarter of 2021, Robinhood boasted 21.3 million active users and more than $565 million in revenue. Things have soured for the brokerage firm of late, with Robinhood’s Q1 2023 results showing a 44% decline in monthly active users and a 30% year-over-year decline in revenue. Robinhood shares are currently changing hands for $9.63, up 18% for the year despite having fallen more than 82% from its all-time-high, notched in August 2021.