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Robinhood to cut some full-time jobs as trading demand eases

Published 06/26/2023, 05:31 PM
Updated 06/26/2023, 06:56 PM
© Reuters. FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly
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(Reuters) -Trading platform Robinhood (NASDAQ:HOOD) Markets said on Monday it was cutting some of its full-time jobs, as it looks to offset costs amid slowing demand for its services.

The Menlo Park, California-based company added that in some cases, teams could make changes based on volume, workload and other factors.

Earlier in the day, the Wall Street Journal reported the company's move.

Robinhood played a crucial role in the retail-trading frenzy during the pandemic but has struggled with a contracting customer base spooked by higher cost of commodities.

The news comes a week after the company announced that it was buying financial technology firm X1 Inc for about $95 million in cash as it looks for new revenue streams to counter weakness in its mainstay trading unit.

© Reuters. FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

Robinhood last year said announced job cuts and said that it would change its organizational structure to drive greater cost discipline.

In its most recent quarter, the company surpassed Wall Street revenue estimates, as the U.S. Federal Reserve's rapid rate hikes boosted its interest income.

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