Robinhood (NASDAQ:HOOD) is cutting jobs in its latest round of layoffs.
The company reports it is letting go about 7% of its full-time employees, or about 150 people marking its third round of layoffs in just over a year as customer trading activity on the platform slows down.
The layoffs were made to “adjust to volumes and to better align team structures,” Chief Financial Officer Jason Warnick said in the message.
Robinhood cut more than 1,000 jobs in two rounds of layoffs last year.
As of the end of 2022, Robinhood had about 2,300 full-time employees, according to its annual report.
“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,” a Robinhood spokesperson said in a statement Monday.
The company experienced an increase in employees voluntarily leaving the company and declines in reported employee job satisfaction in the time immediately after the layoffs last April and August, Robinhood said in its last quarterly report.
As of May, Robinhood had fewer than 11 million monthly active users.
Transaction-based revenue in the first quarter dropped 5% year over year and was more than halved from the first quarter of 2021, per WSJ.
Robinhood recently acquired credit card startup X1 in a $95 million cash deal to expand offerings beyond trading.
HOOD stock is currently 19% this year-to-date but down more than -72% since its inception in July 2021.
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Latest Robinhood Stock News
Robinhood launched a new 24-hour trading service, making the company the “first brokerage to enable customers to trade individual stocks at their convenience — 24 hours a day, 5 days a week.”
The announcement came after the company laid out the goal of 24/7 trading recently.
Under the new 24-hour market, Robinhood offers trading from 8 p.m. ET Sunday to 8 p.m. ET Friday for 43 securities, according to a report from the Wall Street Journal.
The new trading rolled out in May with all customers expected to have access by June.
Stocks confirmed to trade will be Apple, Amazon, and Tesla stock.
Robinhood has also applied for a Futures Commission license in March and expects to launch futures trading by the end of 2023 if approved.
“It’s the next step in evolving the market to how it should work, which is 24/7, and more like a piece of software rather than a brick-and-mortar institution that’s tied to U.S. east coast working hours,” Vlad Tenev told the WSJ.
“We’re continuing to ship aggressively, increase customer satisfaction, and deliver strong financial performance on the path to GAAP profitability.”
The company is hoping to gain some increased engagement from investors it had during the COVID-19 pandemic, according to the report.
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