Robinhood Fires 7% of Its Workforce After Delisting Cardano, Solana, and Polygon
The SEC’s lawsuit against prominent cryptocurrency exchanges has caused widespread market uncertainty.
SEC’s lawsuit against Binance and Coinbase has sent shockwaves across the cryptocurrency market. In the United States, crypto assets and exchanges are threatened with extinction, and they must traverse complex regulatory environments with little clarity. Robinhood is among those impacted, and it has been compelled to take extreme steps to survive.
It has complied with the SEC’s latest crypto crackdown, so Robinhood must make strategic shifts to protect its market position.
Delisting Solana (SOL), Cardano (ADA), and Polygon (MATIC) have created new difficulties for Robinhood, including lower income and less user engagement. The commission-free exchange is considering a corporate restructuring that would result in job losses to meet these issues.
This is the third wave of layoffs in a year, affecting around 150 people, or 7% of the workforce. CFO Jason Warnick mentioned “adjusting volumes” and “better alignment of team structures” as the reasons for the layoffs at Robinhood.
Since April, Robinhood has reduced its workforce by nine percent; since August of 2022, it has reduced its workforce by twenty-three percent, totalling more than a thousand people.
The increasing pressure from the regulator’s crypto crackdown may have contributed to the online brokerage’s decision to lay off workers. Since the FTX scandal, Robinhood’s cryptocurrency listings have gotten them in trouble with the SEC. Regulators are pressuring the exchange to implement cost-cutting and compliance measures.
The decision to liquidate $70 million in Cardano (ADA), Polygon (MATIC), and Solano (SOL) assets in the coming months is just one example.