Robinhood Lays Off 7% Of Its Full-time Workforce To Better Align Team Structures
- Robinhood will lay off around 7% of its full-time workers, or roughly 150 individuals, due to a lack of consumer engagement.
- The layoffs were made to react to volume and better align team structures, according to Chief Financial Officer Jason Warnick.
- Robinhood’s user base has decreased as commodity prices have risen, and the business saw an increase in workers departing voluntarily.
According to CNBC, Robinhood, a stock and cryptocurrency trading platform, said on Monday that it will let off around 7% of its full-time workers, or about 150 individuals, owing to a fall in consumer engagement.
The trading platform was critical in the retail trading frenzy during the epidemic, but it has suffered with a shrinking user base as commodity prices have risen.
“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,” Robinhood stated.
The layoffs were made to react to volume and better align team structures, according to Chief Financial Officer Jason Warnick’s statement to the WSJ.
The announcement comes a week after the business announced the acquisition of financial technology startup X1 Inc for around $95 million in cash as it seeks fresh income streams to offset the deterioration in its primary trading segment.
Last year, Robinhood laid off over 1,000 employees in two waves of layoffs. According to its annual report, Robinhood has over 2,300 full-time workers as of the end of 2022.
According to Robinhood’s most recent quarterly report, the business saw an increase in workers departing voluntarily and a decrease in reported employee job satisfaction in the months after the layoffs last April and August.
Robinhood has less than 11 million monthly active users as of May. Transaction-based revenue fell 5% year on year in the first quarter and was more than halved from the same period in 2021. The company exceeded Wall Street revenue projections in the most recent quarter, as the US Federal Reserve’s quick rate rises increased its interest income.
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