Stock trading app provider Robinhood (NASDAQ:HOOD) has reportedly laid off another 7% of its workforce, around 150 workers. This, according to a recent update from the WSJ.
With trading volumes declining considerably over the past year, the Fintech company made the cuts in order to “better align” team structures, the WSJ revealed, while citing an internal message from Robinhood CFO Jason Warnick.
Those impacted by this move reportedly work in customer experience and platform shared services; customer trust and safety; as well as safety/productivity.
This is notably the third round of cuts made by Robinhood in the past year. The firm had laid off about 9% of its workforce last April prior to laying off another 23% this past August while citing macroeconomic issues and the crypto market’s massive crash. In total, about a thousand staff members at Robinhood have now lost their jobs.
This past week, the company agreed to acquire credit card startup X1 for approximately $95 million in cash.
According to Robinhood, this marks “an important step in their journey towards broadening their product offerings and deepening their relationship with existing customers.”
Providing people with access to a no-fee credit card aligns with their mission “to democratize finance for all.”
The X1 stainless steel credit card “has no annual fees, late fees, or foreign transaction fees.”
Further, design innovation is “a part of Robinhood’s DNA and X1 brings the sleek and intuitive mobile app experience their customers have come to expect.”
Vlad Tenev, CEO and co-founder of Robinhood, said:
“This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit.”
Deepak Rao, CEO and co-founder of X1, said:
“When founding X1, we set out to create a different kind of credit card with an unparalleled experience for customers, similar to Robinhood’s mission to make our financial markets more accessible to all. We share the same ethos and joining together with Robinhood we’ll be able to offer an enhanced credit card experience.”