Robinhood to Cut 10% of Workforce, About 290 Roles

Robinhood said on Tuesday it will cut 10% of its full-time workforce, about 290 roles, to flatten management layers and operate more efficiently. The Menlo Park, California-based company had about 2,900 full-time employees as of December 31. CEO Vlad Tenev told employees the reductions come from a position of strength.

"Robinhood's business has never been stronger," he wrote in a note shared on X. "We cannot default to operating as a heavily-layered organization. " The company expects to incur about $20 million in restructuring charges for severance and benefits plus roughly $8 million in share-based compensation expenses.

Both charges will be recognized in the second quarter, and Robinhood will close the small number of remaining open roles. Shares rose nearly 3% in premarket trading after the announcement. The stock closed Monday down 13% for the year.

Robinhood cited record June month-to-date average daily trading volumes across equities, options, and prediction markets. In April the firm missed first-quarter profit expectations amid crypto-driven volatility, but market conditions have since improved with easing Middle East tensions and stronger equity markets.

To lessen dependence on trading revenue that fluctuates with sentiment, Robinhood has added retirement accounts, wealth management services, and credit cards in recent years.