Robinhood Announces 7% Layoff Amidst Low Trading Volume
There will be roughly 150 layoffs at Robinhood Markets, or about 7% of the company’s full-time personnel, according to an announcement made on June 26. The firm has made this adjustment in an effort to increase customer participation.
Yet Another Layoff
Already having decreased its employment by 23%, or 1,000 people, in August 2022, Robinhood is now cutting another 7 percent. The company’s popularity skyrocketed among younger customers during the outbreak and lockdowns. More than 21 million people used it monthly during its highest quarter in Q1 of 2021.
However, that figure had fallen to around 11 million MAU by May of 2023. Also, Q1 2023 transaction fee revenue was 5% lower than Q1 2022 and 50% lower than Q1 2021 levels.
According to the firm:
“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.”
Recent layoffs affected workers in the areas of customer support, shared platform services, security, and efficiency. There have been layoffs at Robinhood less than a week after the company agreed to acquire X1 in a $95 million deal.
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