Robinhood, the financial services company that offers cryptocurrencies, has decided to make a new layoff affecting around 150 full-time employees, or about 7% of its workforce. This is the third layoff made by the company, which has already laid off more than 1,000 employees in just over a year. According to Robinhood, this restructuring is due to a decline in its activity.
Robinhood makes another layoff
According to exclusive information from the Wall Street Journal, the Robinhood firm has decided to cut 7% of its full-time staff, or around 150 people. This is the company’s third round of layoffs in just over a year, pointing to declining trading activity on its platform.
More specifically, this decision aims to “ adapt to volumes and better align team structures “, according to Jason Warnick, the chief financial officer of Robinhood. An opinion shared by a spokesperson for the company, who explained what motivated this choice:
“We ensure operational excellence in the way we work together on an ongoing basis. In some cases, this may mean teams making changes based on volume, workload, org design, and more. »
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According to a document seen by the Wall Street Journal, the people affected by this wave of layoffs would have functions in the areas of customer experience, customer security, productivity and shared services of the platform.
The company continues to experience difficulties, as evidenced by the publication of its last quarterly report, reporting a 30% drop in cryptocurrency revenue. By way of comparison, in the second quarter of 2021, Robinhood had more than 21 million users, compared to “only” 11 million last May.
During his 2 previous dismissals, Robinhood had already laid off more than 1,000 employees. Following recent actions by the United States Securities and Exchange Commission (SEC), Robinhood had announced the end of support for ADA, MATIC and SOL effective as of today. The balances of these cryptocurrencies not withdrawn by the customers concerned will be fully liquidated during the day and then returned to them in the form of credit.
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Published by Editions Larousse
Source: Wall Street Journal
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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