According to internal company messages, roughly 150 full-time employees are being laid off.
Jason Warnick, the chief financial officer at Robinhood, reportedly stated in an internal business letter 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 but stated that “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 alleged layoffs occur just five days after Robinhood paid $95 million to purchase the credit card company X1. Last year, as profit margins shrank due to a fall in trading activity and muted prices of stocks and cryptocurrencies, Robinhood reduced its overall personnel by 9% in April and let go of 23% of its remaining employees in August. More than 1,000 employees were lost as a result of the two reductions.
Robinhood reached its height in the second quarter of 2021, generating more than $565 million in revenue and 21.3 million active users. Recently, things have become worse for the brokerage company; according to Robinhood’s Q1 2023 statistics, both monthly active users and revenue fell by 44% and 30%, respectively.
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