Robinhood Announces Another Layoffs, Slashing 7% of Full-Time Staff amid Market Adjustments
In a recent development, Robinhood Markets, the popular online brokerage firm, is reportedly planning to lay off approximately 150 full-time employees, amounting to 7% of its workforce. This move comes as Robinhood’s third round of layoffs within a span of just over a year.
According to an internal message obtained by The Wall Street Journal, Jason Warnick, the Chief Financial Officer of Robinhood, cited the need to “adjust to volumes and to better align team structures” as the primary reasons behind these layoffs.
While a Robinhood spokesperson declined to comment on the specific layoffs, they 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.”
This latest round of layoffs comes merely five days after Robinhood’s acquisition of credit card firm X1 in a $95 million deal. It is worth noting that Robinhood had previously undertaken substantial downsizing measures in response to a decline in trading activity and the subdued prices of equities and cryptocurrencies, resulting in a significant reduction in profit margins. In April last year, the company cut 9% of its total headcount, followed by an additional 23% reduction in staff in August, resulting in the loss of over 1,000 employees.
During its peak in the second quarter of 2021, Robinhood enjoyed 21.3 million active users and generated over $565 million in revenue. However, recent trends have not been favorable for the firm, as its Q1 2023 results indicate a 44% decline in monthly active users and a 30% year-over-year decrease in revenue.
Despite the challenging market conditions and operational adjustments, Robinhood’s shares have seen a modest increase of 18% this year, currently trading at $9.63. Nevertheless, the stock price has experienced a significant decline of over 82% since reaching its all-time high in August 2021.
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