Amidst a challenging period, online brokerage firm Robinhood Markets is reportedly set to lay off approximately 150 full-time employees, marking its third round of layoffs in just over a year.
The decision comes as the company aims to “adjust to volumes and better align team structures,” according to an internal message from Robinhood CFO Jason Warnick, as reported by The Wall Street Journal.
This report follows Robinhood’s recent acquisition of credit card firm X1 in a $95 million deal. However, the company has faced significant setbacks, including a decline in trading activity and subdued prices of equities and cryptocurrencies, leading to shrinking profit margins.
Last year, Robinhood had already reduced its headcount by 9% in April and further laid off 23% of its remaining staff in August, resulting in a loss of over 1,000 employees.
Despite the challenges, Robinhood’s shares have seen some positive movement. Currently priced at $9.63, they have experienced an 18% increase for the year, although they have fallen over 82% from their all-time high reached in August 2021.
Robinhood’s ongoing efforts to streamline its operations and adjust to changing market conditions reflect the company’s determination to overcome its current hurdles.
