- Layoffs are being implemented to combat declining client engagement.
- In August 2022, the company trimmed its workforce by 23%.
On June 26th, Robinhood Markets announced that they will be laying off around 7% of its full-time staff. This equates to around 150 people. This change is being implemented as the company attempts to combat declining client engagement.
The organization stated:
“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.”
This is not the first time Robinhood has reduced its workforce; in August 2022, the company trimmed its workforce by 23%, which comes to a total of 1,000 workers.
Declining Trade Volume
During the epidemic and lockdowns, the company saw a huge uptick in popularity among its younger clientele, who came in droves to trade meme stocks and cryptocurrency. In its strongest quarter, Q1 2021, it had more than 21M active users every month.
By May of 2023, however, that number had dropped to around 11 million MAU. Additionally, transaction fee income was down 5% year-over-year in Q1 2023 and was just 50% of what it had been in Q1 2021.
The most recent round of layoffs hit personnel in the areas of customer experience, platform-shared services, trust and safety, and productivity.
Less than a week after agreeing to purchase credit-card firm X1 in a cash transaction for $95 million, Robinhood has begun laying off employees. As a result of the regulatory assault on the sector this month, the company delisted some digital assets and is now looking to diversify its revenue streams. The delisted assets were Cardano, Solana, and Polygon.
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