Robinhood (HOOD) has cut 7% of its full-time staff, about 150 employees, in a third round of layoffs since April 2022, according to The Wall Street Journal. The trading platform, which allows customers to trade stocks, options, and crypto, made the cuts due to a slowdown in customer trading activity.
The number of active traders had dropped to fewer than 11 million in May, down from a peak of 21 million a month in second-quarter 2021, reported the WSJ. Crypto trading volume for May fell 68% from a year earlier, the company said.
Chief Financial Officer Jason Warnick told the WSJ in a message that the layoffs were made to adjust to volumes and to better align team structures. A spokesperson added, We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload, org design, and more.
In 2022, Robinhood reduced headcount by 9% (approximately 340 people out of 3,800) in a first round of cuts and 23% (780 workers) in the second.