In its third wave of layoffs in less than a year, online brokerage company Robinhood Markets is expected to fire about 150 full-time employees or 7% of its whole workforce.
Jason Warnick, the chief financial officer at Robinhood, supposedly stated in an internal business letter that reductions were being implemented to “adapt to volumes and to further realign team structures.
Robinhood representative did neither denied nor confirmed the staff cuts but said, “We continuously strive for operational excellence in our collaboration. This could sometimes include that teams adjust based on factors including workload, volume, organisational structure, and more.”
The suspected layoffs occurred five days after Robinhood paid $95 million to purchase the credit card company X1.
Last year, as profit margins shrunk due to a fall in trading activity and reduced prices of stocks and digital currencies, Robinhood reduced its overall workers by 9% in April and announced the resignation of 23% of its existing employees in August. More than 1,000 employees were lost as a result of the two reductions.
Robinhood reached its pinnacle in the second quarter of 2021, generating more than $565 million in revenue and 21.3 million daily 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.
The price of Robinhood shares is at $9.63, up 18% for the past twelve months while having dropped more than 82% from its all-time high, set in August 2021.
