Key facts
- Robinhood is reducing its workforce by approximately 10%, affecting around 290 full-time employees.
- The company aims to flatten management layers and enhance efficiency.
- Robinhood expects to incur around $28 million in restructuring and share-based compensation charges.
- CEO Vlad Tenev affirmed the company's strong business position despite the layoffs.
Stock and crypto trading platform Robinhood is cutting 10% of its workforce as it restructures its organization, a move the company says will improve efficiency. CEO Vlad Tenev told staff the company is reducing 10% of its full-time employees as part of “flattening” its org structure. Tenev stated that the company cannot “default to operating as a heavily-layered organization” if it wants to scale its mission, adding that Robinhood must “continuously raise” its performance bar. The layoffs are expected to affect about 290 employees, as Robinhood currently has approximately 2,900 full-time employees. Robinhood estimated it will incur about $28 million in total restructuring-related charges, including roughly $20 million for employee severance and benefits and about $8 million in share-based compensation costs. The company said it expects to recognize these charges in the second quarter of 2026. Tenev said that the company’s business “has never been stronger,” adding that the workforce reduction is a proactive move aimed at improving execution and focus. Robinhood shares rose 1.3% in pre-market trading following the announcement.