Robinhood Reduces Workforce 10% While Pledging to Keep Hiring

Robinhood (HOOD) is cutting about 290 jobs, roughly 10% of its full-time workforce, as CEO Vlad Tenev flattens the organization structure and pushes for higher talent density.

The trading platform framed the reduction as a proactive move from strength, citing record June trading volumes across equities, options, and prediction markets.

Why Robinhood Is Cutting Staff Now

Robinhood had about 2,900 full-time employees as of December 31, so the cut affects roughly 290 roles. The company expects about $20 million in severance and benefits charges.

It also anticipates roughly $8 million in share-based compensation expenses. Both charges will land in the second quarter.

Tenev said the firm acted from a position of strength rather than financial pressure. 

“Robinhood’s business has never been stronger. But to achieve the massive scale of our mission, we cannot default to operating as a heavily-layered organization. We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact,” the CEO said.

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Robinhood’s first-quarter results showed that net revenue rose 15% from a year earlier to $1.07 billion. The company booked $346 million in profit, or $0.38 per diluted share. Adjusted EBITDA gained 14% to $534 million, though operating costs grew 18% to $656 million.

Despite the layoff, the fintech plans to keep hiring top-tier talent and lean on frontier technologies, citing values of being “Lean & Disciplined” and “High Performance.”

“Because our financial position is strong, we are making this change proactively. The goal is to maximize our talent density and ensure that our culture is defined by an absolute elite performance bar and a superlative commitment to our customers. This transition creates even more opportunities for our most talented people to grow and take on greater responsibility,” Tenev added.

Robinhood joins a wave of 2026 layoffs among crypto-exposed firms. Dune Analytics cut 25% of staff in May. Meanwhile, Gemini reduced headcount by about 30% this year as full-year losses reached $585 million. 

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