Online brokerage firm Robinhood Markets is reportedly planning to lay off approximately 150 full-time employees, constituting 7% of its workforce. This marks the third round of layoffs in just over a year for the company, as it aims to adjust to changing volumes and align team structures.
According to an internal message seen by The Wall Street Journal, Robinhood’s Chief Financial Officer, Jason Warnick, cited the need to adapt to volumes and improve team alignment as reasons for the layoffs. The company spokesperson did not confirm or deny the reported job cuts but emphasized the focus on operational excellence and making necessary changes based on factors like volume, workload, and organizational design.
These layoffs follow Robinhood’s recent acquisition of credit card firm X1 in a $95 million deal. In 2021, the company underwent two rounds of job cuts, resulting in a loss of over 1,000 employees, driven by reduced trading activity and declining profits. While Robinhood boasted 21.3 million active users and over $565 million in revenue during its peak in Q2 2021, its Q1 2023 results showed a 44% decline in monthly active users and a 30% year-over-year revenue decline.
Despite the challenging period, Robinhood’s shares have experienced some recovery, currently trading at $9.63, up 18% for the year. However, this represents a significant drop of over 82% from the company’s all-time high reached in August 2021. The brokerage firm continues to navigate changing market dynamics and aims to make necessary adjustments to regain its footing.
Robinhood’s latest round of layoffs reflects its ongoing efforts to adapt to evolving market conditions.