Robinhood cutting 7% of its full-time employees

(Reuters) – Robinhood Markets said on Monday it was cutting about 7% of its full-time employees, as it struggles with reduced customer engagement.

“We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload,” Robinhood said in a statement.

The Wall Street Journal first reported the news earlier in the day.

The trading platform 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.

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.

(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel)