- Robinhood, a popular cryptocurrency platform, has laid off approximately 150 employees due to a decrease in customer activity and trading operations.
- This is the third round of layoffs for the company, which cited rising costs and a decline in customer activity as reasons for the downsizing.
- Despite reaching 21 million users in 2021, Robinhood only served 11 million customers in May, leading to a decrease in interest and slowing customer activities which prompted the company to consider downsizing.
Robinhood Downsizing Amid Decreasing Customer Activity
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Robinhood, a renowned platform in the cryptocurrency world, has recently let go of approximately 150 of its employees. This significant layoff, equivalent to about 7% of its full-time staff, has drawn considerable attention.
Adapting to Decreased Trading Activities
Robinhood has resorted to layoffs for the third time, stating that it is adapting to the decrease in its customers’ trading activities. The company, which successfully reached 21 million users in 2021, served only 11 million customers in May. This dwindling interest and slowing customer activities have led the company to contemplate downsizing.
Significant Drop in May Trading Volume
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According to a report by The Wall Street Journal, based on an internal company message, the company’s trading volume in May dropped by 68% compared to the same month the previous year. The company’s Finance Director, Jason Warnick, gave a statement to The Wall Street Journal. He explained that the layoffs were carried out to improve volumes and better align the team structure.
It should be noted that Robinhood had previously laid off 1,120 employees.