Robinhood will cut about 10% of its full-time workforce as it restructures the company around smaller teams and fewer management layers. The reduction will affect approximately 290 employees, based on the 2,900 full-time staff Robinhood reported at the end of 2025.
The company did not cite artificial intelligence as the reason for the cuts. Instead, it said the restructuring would help maintain a high-performance culture, accelerate product development, and keep its operations lean.
Robinhood Plans Flatter Teams
CEO Vlad Tenev told employees that Robinhood could not operate as a heavily layered organization as it continued to grow. He said the company needed a focused workforce where individual employees could have a greater effect on its products and operations.
“We cannot default to operating as a heavily-layered organization,” Tenev wrote. “We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact.”
Tenev said Robinhood would continue hiring selectively and investing in employees and “frontier technologies.” The company will also close a small number of vacant positions as part of the restructuring.
Robinhood expects to record approximately $20 million in severance and employee benefit costs. It also expects about $8 million in share-based compensation charges, bringing the total estimated cost to $28 million, according to its regulatory filing.
Cuts Come During Revenue Growth
Robinhood said the reductions were being made while its business remained strong. Average daily trading volumes in June reached record levels across equities, options, and prediction markets, the company said.
Its first-quarter revenue rose 15% year over year to $1.07 billion. Net income increased 3% to $346 million, while Robinhood Gold subscriptions grew 36% to a record 4.3 million, according to its first-quarter results.
Transaction-based revenue increased 7% to $623 million, supported by higher income from equities, options, and event contracts. Cryptocurrency transaction revenue fell 47% year over year to $134 million.
Robinhood also said activity improved during the second quarter. Rising subscription revenue, prediction-market fees, and equity and options trading volumes contributed to the company’s stronger operating figures.
The restructuring follows earlier workforce reductions at Robinhood in 2022 and 2023. The company said affected employees would receive severance and other support.
Featured image credits: Marco Verch / ccnull.de
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