Key facts
- Robinhood Markets is laying off approximately 10% of its workforce, impacting around 290 jobs.
- The company aims to reduce costs, flatten management layers, and improve operational efficiency.
- Robinhood expects to incur approximately $28 million in restructuring and share-based compensation charges.
- CEO Vlad Tenev stated the company's business is strong and the cuts are proactive.
- Revenue from crypto transactions fell 34% sequentially to $134 million in the first quarter.
Robinhood Markets Inc. announced it is cutting approximately 10% of its full-time workforce, impacting about 290 employees. The company framed the move as a restructuring to flatten management layers and accelerate product velocity.
CEO Vlad Tenev informed employees that the company must be a "lean, hyper-focused team" to achieve its ambitions. He stated the workforce reduction is proactive, emphasizing that Robinhood remains in a strong business position and plans to continue strategic hiring in priority areas.
According to an SEC filing, Robinhood estimates it will incur $20 million in cash severance and benefits costs and $8 million in share-based compensation charges, expected to be recognized in the second quarter of 2026. This restructuring follows a contraction in the company's digital asset business, which saw crypto revenue fall 34% sequentially to $134 million from $221 million in the first quarter.
Despite the revenue slump, Robinhood has expanded its offerings, including the launch of AI agent products for stock trading and credit card purchases. Robinhood's stock price rose in pre-market trading following the announcement.