Stash, the popular investing app supported by T. Rowe Price and Eldridge, has announced a workforce reduction of 10% as part of a broader reorganization strategy led by new CEO Liza Landsman. The company confirmed that approximately 40 employees were laid off last week, marking the third round of layoffs within the past year.
Over the course of the last 12 months, around 120 positions have been eliminated. In the summer of 2022, approximately 40 employees were let go, followed by an additional 40 job cuts in December.
While Stash has reduced its workforce, it also stated that it is actively adding new positions. In a statement, Landsman explained, “We restructured the organization, introduced new teams, and are actively recruiting for different types of expertise.” She emphasized Stash’s goal of achieving profitability in the near future, stating that the changes were intended to optimize the company for scalability as it continues to achieve significant milestones.
At its peak, Stash employed 500 individuals. Following the reorganization that began on May 1, the workforce decreased to 380. However, it has since rebounded to 395 as of Tuesday. A Stash spokesperson confirmed plans to increase the headcount to 420 in the near future.
This latest round of layoffs is the first under the leadership of Landsman, who assumed the role of CEO in February, replacing co-founder Brandon Kreig.
The decision comes at a time when stock-trading startups face increasing pressure to achieve profitability, with rising interest rates and a shift back to in-person activities impacting growth in the industry.
Stash, valued at $1.4 billion in a Series G funding round in February 2021, differentiates itself from competitors like Robinhood by generating the majority of its revenue through a tiered subscription model rather than payment for order flow. While Robinhood’s shares have declined by approximately 85% since reaching their peak in 2021, Stash reported a 30% increase in revenue to over $100 million in 2022, according to a spokesperson.
As Stash undergoes this reorganization and streamlines its operations, the company aims to position itself for sustainable growth in the highly competitive investing app market.