Robinhood Markets, a popular trading platform, has announced a 7% reduction in its workforce, amounting to around 150 full-time employees. This comes as the company faces challenges with reduced customer engagement. The firm has previously made cuts, with a 23% reduction in staff in August 2022 and a total of 1,000 layoffs last year.
Once popular during the pandemic, Robinhood experienced a surge in popularity as millennials flocked to trade meme stocks and cryptocurrencies. However, its monthly active user base has halved since Q1 2021, dropping to around 11 million by May 2023. Additionally, revenue from transaction fees declined by 5% year-on-year in Q1 2023.
The recent layoffs primarily affected customer experience, platform shared services, customer trust and safety, and productivity roles. This move comes shortly after Robinhood’s acquisition of credit-card startup X1 for $95 million as the firm seeks to diversify its offerings.
Other major finance firms, such as Goldman Sachs and KPMG, have also implemented job cuts. Payoneer, Bitwise, Binance.US, and Taxbit have also laid off employees in recent weeks due to various factors, including macroeconomic conditions and regulatory pressures.
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