Online Crypto Broker Lays Off 7% Of Its Staff
Robinhood Plans Major Layoffs Amid Falling Profits and User Numbers
Online broker Robinhood is reportedly planning to cut about 150 staff, or 7% of its total employees. This is the third time in a year that the company has reduced its workforce.
Robinhood's CFO, Jason Warnick, mentioned in a company message that the layoffs were necessary to adjust to changing business needs. However, a Robinhood spokesperson did not confirm or deny the layoffs.
This news comes only five days after Robinhood bought credit card company X1 for $95 million. In the past year, Robinhood has reduced its workforce by 9% in April and 23% in August due to falling trading activity and profit margins.
These cuts resulted in the loss of over 1,000 employees.
In the middle of 2021, Robinhood had 21.3 million active users and made over $565 million. But recently, things have not been going well. In the first quarter of 2023, Robinhood reported a 44% drop in active users and a 30% drop in yearly revenue.
Despite a significant drop from its highest value, Robinhood shares are currently up 18% for the year.
Reported by Coinpaprika
