About 23 percent of Robinhood Markets Inc.’s full-time employees are being laid off as the glitzy online brokerage continues to struggle due to a dramatic decline in consumer trading activity. Following a wave of layoffs, about a 9% personnel reduction, in April, Robinhood has now reduced its workforce again this year. Over 1,000 jobs have been lost from the organization in total during the two waves. Last Layoffs Were Not Enough In a note posted to the firm’s site, Vlad Tenev, the Chief Executive of Robinhood, explained that the layoffs are part of a more significant company reorganization. Mr. Tenev claimed in the statement that the earlier reduction in workforce “did not go far enough” in assisting the business in reducing costs. Robinhood Released Second-Quarter Report Additionally, Robinhood released its second-quarter report data one day earlier than expected, revealing a drop in monthly active users to 14 million, or a 34% decrease from the previous year. $318 million less in revenue, a 44 percent decline. Due to its user-friendly, mobile-first online brokerage platform, Robinhood, which debuted less than ten years ago, helped pioneer the free stock trading phenomena during the Covid-19 pandemic. According to public documents, Robinhood had more than 21 million active users by the second quarter of last year. These people flocked to the app to trade fancy meme stocks, options, and cryptocurrency. During the Covid-19 pan...
