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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.<\/p>\n
CEO Vlad Tenev told staff the company is reducing 10% of its full-time employees as part of \u201cflattening\u201d its org structure, according<\/a> to a statement on X by Robinhood on Tuesday.<\/p>\n In an internal memo, Tenev said the company cannot \u201cdefault to operating as a heavily-layered organization\u201d if it wants to scale its mission, adding that Robinhood must \u201ccontinuously raise\u201d its performance bar.<\/p>\n The rationale mirrors explanations offered by major crypto companies such as US exchange Coinbase<\/a> and Jack Dorsey\u2019s Block<\/a>, which have also linked layoffs this year to reducing management layers and improving efficiency.<\/p>\n The layoffs are expected to affect about 290 employees, as Robinhood currently has approximately 2,900 full-time employees, a spokesperson for the company told Cointelegraph.<\/p>\n Robinhood previously reported roughly 2,900 in full-time staff as of Dec. 31, 2025, according<\/a> to its Form 10-K filing with the US Securities and Exchange Commission.<\/p>\n In a separate Form 8-K filed on Tuesday, the company said<\/a> the reduction in force also includes the closure of a small number of remaining open roles across the company.<\/p>\n Source: Robinhood Comms<\/em><\/p>\n 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.<\/p>\n Robinhood said it is taking the action \u201cfrom a position of business strength,\u201d pointing to June month-to-date average daily trading volumes at record levels across equities, options and prediction markets.<\/p>\n Tenev said that the company\u2019s business \u201chas never been stronger,\u201d adding that the workforce reduction is a proactive move aimed at improving execution and focus.<\/p>\n Related: <\/strong><\/em>Robinhood enters Canada after $180 million WonderFi acquisition<\/strong><\/em><\/a><\/p>\n The announcement did not specifically mention artificial intelligence-driven restructuring, but said the company will continue hiring selectively, invest in top-tier talent and \u201cutilize frontier technologies\u201d to improve performance.<\/p>\n The move comes after first-quarter results missed analyst expectations, with revenue and earnings coming in below forecasts. Crypto trading was a key drag, with volumes down roughly 50% year-on-year<\/a>, underscoring ongoing volatility in transaction-based revenue streams.<\/p>\nLayoffs to affect around 290 employees<\/h2>\n
Tenev says business \u201chas never been stronger\u201d despite weak Q1 results<\/h2>\n