Robinhood has cut about 7% of its full-time workforce, marking the company’s third wave of job cuts in just over a year. The decision comes as the company is facing a decline in client trading activity and comes after the controversial delisting of three major cryptocurrencies, according to the original report. wall street journal.
The online brokerage said in an internal message that about 150 employees would be affected by the job cuts. The move is part of an effort to “adapt to volume and better align team structures,” CFO Jason Wernick said in a note.
The company cut more than 1,000 jobs last year and will have about 2,300 full-time employees by the end of 2022, according to its annual report. A Robinhood spokesperson said the company is committed to “continuing excellence in working together,” which may include changes based on volume, workload and organizational design. said there is.
Headcount reductions primarily impact roles in customer experience, platform shared services, customer trust and safety, and safety and productivity. The company is facing an increase in employee turnover and reports job satisfaction has declined after the last layoff.
The latest move comes less than a week after Robinhood announced it would acquire credit card startup X1 in a $95 million cash transaction as part of its ongoing strategy to expand its business beyond trading. It continues.
user drops out
At the same time, the company is also grappling with a significant reduction in monthly active users. As of May, Robinhood had fewer than 11 million users, down from more than 21 million active users at the peak of the COVID-19 pandemic. Transaction-based revenue in the first quarter was down 5% year-over-year, less than half of the first quarter of 2021.
Financial services firms are also facing headwinds from recent moves in the cryptocurrency market. Amid a crackdown by the U.S. Securities and Exchange Commission (SEC), Robinhood has announced that it will delist Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27. The decision follows the SEC lawsuit against Coinbase and Binance, which treats these tokens as unregistered securities.
The delisting could put further pressure on the company’s cryptocurrency trading volume, which was reported to be down 30% year-on-year in May. However, these issues are not unique to Robinhood, as relatively calm cryptocurrency markets have led to an overall decline in trading volumes.
Robinhood laying off 7% of its workforce on the same day as the delisting of Cardano, Polygon and Solana first appeared on Cryptoslate.