Robinhood to Cut 10% of Staff, Take $28 Million Restructuring Charge

Robinhood Markets Inc., the U.S. stock and cryptocurrency trading platform, is cutting about 10% of its full-time workforce as part of a restructuring aimed at simplifying the organization and speeding up product development.

Crypto media outlet The Block reported on June 16 that Robinhood disclosed the reduction that day.

In a memo to employees, Chief Executive Officer Vlad Tenev wrote that the company needs to be “a lean, highly focused team where every individual is empowered to have a big impact.” He added that execution remains strong, but the company’s goals require it to keep raising the bar.

Robinhood described the layoffs as a proactive step. The company said it remains in a strong business position and plans to continue strategic hiring in higher-priority areas.

In an 8-K filing with the U.S. Securities and Exchange Commission, Robinhood said it expects to record $28 million in total restructuring costs. That includes $20 million in cash severance and benefits expenses and $8 million tied to stock-based compensation. The charges are set to be recognized in the second quarter of 2026.

The restructuring comes as Robinhood’s crypto business has slowed. In its first-quarter earnings report released in April, the company posted profit that missed market estimates as volatility in the crypto market weighed on trading activity.

Robinhood reported crypto revenue of $134 million and crypto trading volume of $24 billion in the quarter, down 47% and 48%, respectively, from a year earlier.

Even so, the company has continued to expand beyond its core trading business. Robinhood recently completed its $180 million acquisition of WonderFi, adding more than 300,000 funded customers in Canada and expanding its international customer base to more than 1 million.

Prediction markets are also emerging as a new growth area. Bernstein recently said Robinhood could be a major beneficiary after prediction-market trading volume reached record levels during the early stages of the FIFA World Cup. Bernstein forecasts Robinhood’s prediction-market revenue will reach $586 million in 2026, up 286% from a year earlier.

Robinhood shares closed up 5.3% at $98.12 in the previous session. The stock was also up 1.1% in premarket U.S. trading on June 16.