Robinhood to cut 10% of staff in leaner restructuring
Robinhood is cutting about 290 jobs even as June trading volumes hit records, signaling a push to flatten management and prove growth discipline.
Robinhood is cutting about 290 jobs, or 10% of its full-time workforce, even as June trading volumes have reached record levels across equities, options and prediction markets. The Menlo Park, California, company says the restructuring is meant to keep the business “lean and disciplined” and move faster, a sharp signal that it wants to look less like a meme-stock survivor and more like a mature financial platform.
Chief executive Vlad Tenev told employees the business has never been stronger, but that strength should not justify a bloated management structure. Robinhood said the reduction in force is aimed at maintaining a high performance culture, accelerating product velocity and keeping the organization less layered. The company also plans to close a small number of open roles, and expects about $20 million in severance and benefits costs plus another $8 million in share-based compensation expenses, with both charges recognized in the second quarter.
The cuts come after a strong first quarter. Robinhood reported April 28 that revenue rose 15% from a year earlier to $1.07 billion, diluted earnings per share were $0.38 and net deposits reached $18 billion. Robinhood Gold subscribers climbed to a record 4.3 million, funded customers totaled 27.4 million and total platform assets stood at $307 billion as of March 31.
The company still entered the restructuring from a larger base than it had a year earlier. Its 2025 annual report listed 2,900 employees as of December 31, 2025, up 600 from the previous year. A 10% reduction would therefore remove roughly 290 positions, underscoring how quickly Robinhood expanded as retail trading roared back after the pandemic boom.
That growth has been paired with a deliberate effort to broaden beyond a pure trading app. Robinhood launched Robinhood Strategies in March 2025, bought Bitstamp in June 2025 and has added retirement accounts, wealth-management tools and credit-card products to reduce reliance on volatile trading volumes. The latest layoffs suggest that, even with June activity running hot, management wants a business that can earn more than one cycle of market enthusiasm.
Shares rose nearly 3% in premarket trading after the announcement, though the stock was still down 13% for the year through the previous close. For Robinhood, the real test is whether a flatter hierarchy produces faster execution or simply masks the pressure of a company still trying to outgrow its post-pandemic origins.
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