- The trading platform has reduced workload
- So they don’t need their previous staff
Cryptobank Robinhood is cutting staff by about 7%. The company stated this in an official press release. The reason for the layoff was a reduction in workload and operational tasks.
“We provide operational excellence in how we work together on an ongoing basis. In some cases, this may mean that teams make changes based on volume and workload.”
The Robinhood platform became popular during the last bull market. At the peak of the popularity of bitcoin and other cryptocurrencies, they offered customers a convenient application for trading. Robinhood saw the highest volume of trading during the pandemic. Now those numbers have fallen significantly.
At the same time, the brand continues to make plans to develop. A week ago Robinhood announced the purchase of tech company X1 Inc, the amount of the deal was $95 million. Among the reasons for the purchase, the company said it wanted to offset the decline in commerce with new service areas.
In its latest financial report, Robinhood’s results exceeded Wall Street analysts’ expectations. They posted higher earnings, largely due to a sharp increase in the prime rate from the Fed.
Robinhood recently said they would review their crypto services. They are scrutinizing the SEC complaints about Coinbase and Binance. It is possible that the company will remove coins recognized as securities from the listing.