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Robinhood Fires 7% of Full Time Employees Same Day it Delists SOL, MATIC, & ADA

By: illustrious
June 28, 2023 4:43 PM EDT
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Online brokerage firm Robinhood is making headlines once again, this time due to its decision to lay off approximately 7% of its full-time employees. This comes as the company faces reduced customer trading activity and follows the controversial delisting of three major cryptocurrencies. The timing of these events has sparked speculation about potential motives behind the delisting and its relation to the layoffs, painting a grim picture for the struggling company.

Layoffs and Adjustments

According to an internal message, around 150 employees will be affected by the latest round of layoffs. Robinhood's CFO, Jason Warnick, stated that this move is part of an effort to align team structures and adjust to current trading volumes. It marks the third wave of layoffs for the company in just over a year, with over 1,000 jobs already cut in the previous rounds.

The impacted roles primarily fall within customer experience, platform shared services, customer trust and safety, and safety and productivity. Robinhood has experienced employee departures and declining job satisfaction following previous layoffs, indicating the negative impact on its workforce.

Declining User Base and Crypto Challenges

In addition to the layoffs, Robinhood is grappling with a significant drop in monthly active users. The platform had fewer than 11 million users as of May, a substantial decrease from the peak of over 21 million users during the Covid-19 pandemic. Transaction-based revenue for the first quarter also dropped 5% year over year and more than halved compared to the first quarter of 2021.

The company's challenges extend to the cryptocurrency market as well. Robinhood recently announced the delisting of Cardano (ADA), Polygon (MATIC), and Solana (SOL) in the wake of regulatory actions by the U.S. Securities and Exchange Commission (SEC). The SEC's crackdown on unregistered securities prompted Robinhood's decision, following similar lawsuits against Coinbase and Binance.

The delisting could further impact the firm's crypto trading volumes, which experienced a year-on-year decline of 30% in May. However, it is important to note that Robinhood is not the only platform facing decreased trading volumes in the current relatively calm crypto market.

Speculation and Uncertain Future

The timing of the layoffs and the delisting of Solana has raised questions and fueled speculation about potential hidden motives. Some suggest that Robinhood may have used the SEC's actions as a cover-up for the layoffs, diverting attention from the company's struggles. The combination of declining user base, decreased trading activity, and regulatory challenges creates a challenging environment for the company's future prospects.


Robinhood's decision to lay off 7% of its staff, coupled with the delisting of major cryptocurrencies, has cast a shadow of uncertainty over the company. With a declining user base and reduced trading volumes, the path ahead appears challenging. The speculation surrounding the motives behind the delisting only adds to the narrative of a struggling company fighting to regain its footing in an increasingly competitive market.

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