On-line brokerage agency Robinhood Markets is reportedly shedding about 150 full-time staff -- 7% of its whole workforce -- in its third spherical of layoffs in simply over a 12 months.
In accordance with an inside firm assertion seen Robinhood's chief monetary officer, Jason Warnick, reportedly wrote in The Wall Road Journal that the cuts had been made to "align with volumes and higher align staff buildings."
A Robinhood spokesperson neither confirmed nor denied the layoffs in feedback to Cointelegraph, however defined:
“We guarantee operational excellence by way of the best way we repeatedly work collectively. In some instances, this could imply groups making adjustments based mostly on quantity, workload, organizational design, and extra.”
The reported layoffs come simply 5 days after Robinhood acquired bank card firm X1 in a $95 million deal. Final 12 months, Robinhood diminished its general workforce by 9% in April and laid off 23% of its remaining employees in August, as a decline in buying and selling exercise and subdued inventory and cryptocurrency costs led to shrinking revenue margins.
The 2 cuts resulted within the lack of greater than 1,000 staff.
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At its peak in Q2 2021, Robinhood had 21.3 million energetic customers and greater than $565 million in income. Issues have gotten worse for the brokerage agency of late, with Robinhood's first-quarter 2023 outcomes displaying a 44% decline in month-to-month energetic customers and a 30% year-over-year drop in income.
Transaction-based income since Q1 2021. Supply: Robinhood
Robinhood shares are at present altering fingers at $9.63, up 18% for the 12 months, although they're down greater than 82% from their all-time excessive of August 2021.
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