Robinhood cuts jobs for the third time in April 2022.
The trading platform Robinhood (HOOD) has recently laid off 150 full-time employees, which is about 7% of its staff. This is the third round of layoffs since April 2022, according to an internal message obtained by The Wall Street Journal. The company, whose platform is used by customers to trade stocks, options, and crypto, made these cuts due to a slowdown in customer trading activity. The number of active traders has decreased to less than 11 million in May, down from a peak of 21 million in the second quarter of 2021. Additionally, the company reported that crypto trading volume in May fell by 68% compared to the previous year.
Robinhood has not yet responded to a request for comment.
The layoffs were made in order to align team structures and adjust to volumes, according to Chief Financial Officer Jason Warnick. “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, org design, and more,” a spokesperson told the newspaper.
This is not the first time Robinhood has laid off employees. In 2022, the company reduced headcount by 9% (approximately 340 people out of 3,800) in the first round of cuts and 23% (780 workers) in the second.
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Edited by Sheldon Reback.
