Are recent layoffs in Charlotte’s fintech industry a cause for concern?

CHARLOTTE — Charlotte’s financial-technology industry has been hit by layoffs multiple times in the last six months.

[ALSO READ: Fintech giant looks to become Charlotte’s next public company]

Most recently, it was Robinhood Markets Inc., an online trading platform. California-based Robinhood said last week it is laying off 9% of its full-time employees, affecting hundreds of people. A Robinhood spokesperson said there were a “small number of employees” here impacted by the layoffs.

“Robinhood is still very committed to maintaining a presence in Charlotte,” the spokesperson said. “While we’re still assessing how the recent reduction in our workforce will affect future hiring plans, Robinhood’s Charlotte office will remain open.”

In early 2021, Robinhood pledged to add 389 new jobs in Charlotte by 2025, as part of an $11.8 million investment. It is eligible for up to $3.7 million in state and local incentives. Charlotte beat out areas including Fort Mill, Denver and St. Louis in landing the new jobs. Average annual wage was estimated at $76,450. At the time, executives touted the city’s workforce as an advantage.

[PAST COVERAGE: Robinhood said to be looking at Charlotte for 300-job office]

Tariq Bokhari, executive director of Carolina Fintech Hub and a City Council member, said Charlotte has spent the last decade preparing its talent pipeline to attract these types of companies. However, there is more work to do.

Fintech is a rocky road as the world evolves to use new models, Bokhari said. Charlotte needs to be positioned to win in this environment.

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“Yes, it’s a cause for concern but maybe not in the way that some people might be calling for everyone to freak out,” Bokhari said. “We’re going to be looking at these companies, all tech companies but particularly fintech, which is at the heart of a lot of what’s going on right now, and we’re going to say, ‘All right, how is their strategy evolving, and how are our workforce programs adjusting to meet those needs?’”

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(Watch the video below: Fintech company Robinhood creating nearly 400 new jobs in Meck County)