Robinhood Markets (HOOD), a popular trading platform, has laid off 7% of its full-time staff, or about 150 employees, in a third round of layoffs since April 2022. The layoffs come as Robinhood adjusts to a slowdown in customer trading activity.
The number of active traders on the platform had dropped to fewer than 11 million in May, down from a peak of 21 million a month in second-quarter 2021. Crypto trading volume for May fell 68% from a year earlier.
The layoffs are the latest in a series of setbacks for Robinhood. The company’s stock price has plummeted more than 70% in the past year, and it has been fined by regulators for outages and misleading customers.
The layoffs are likely to raise further concerns about Robinhood’s future. The company has been struggling to attract new users, and its business model is based on generating revenue from trading fees. However, trading volumes have declined in recent months, as investors have become more cautious about the stock market.
The layoffs are a sign that Robinhood is facing serious challenges. The company will need to find a way to turn things around if it wants to avoid going the way of other once-popular trading platforms, such as Webull and M1 Finance.
In addition to the layoffs, Robinhood has also been facing other challenges in recent months. In February, the company was fined $70 million by the Securities and Exchange Commission (SEC) for misleading customers about its order routing practices. In March, Robinhood was forced to halt trading in several meme stocks, such as GameStop and AMC, due to volatility in the market.
The layoffs and other challenges are a sign that Robinhood is facing a crossroads. The company will need to make some major changes if it wants to survive in the long term.
Here are some of the key takeaways from the article:
- Robinhood has laid off 7% of its full-time staff, or about 150 employees.
- The layoffs come as Robinhood adjusts to a slowdown in customer trading activity.
- The layoffs are the latest in a series of setbacks for Robinhood.
- The layoffs are a sign that Robinhood is facing serious challenges.
- The company will need to find a way to turn things around if it wants to avoid going the way of other once-popular trading platforms.
