Robinhood Markets cuts 10% of workforce, laying off 290 employees

Robinhood is trimming the fat. The trading platform announced it will eliminate roughly 290 positions, about 10% of its total workforce, in what CEO Vlad Tenev is framing as a push toward a leaner organizational structure.

The cuts are expected to cost the company approximately $28 million in restructuring charges. That breaks down to $20 million in cash severance and benefits, plus $8 million tied to share-based compensation, all hitting the books in Q2 2026.

Crypto revenue takes a serious hit

Net revenue came in at $1.07 billion for the quarter, representing 15% year-over-year growth. That sounds solid until you learn it missed analyst expectations.

The crypto numbers were far less ambiguous. Transaction revenue from cryptocurrency trading plummeted 47% year-over-year to $134 million, accompanied by a 48% decline in trading volumes.

Flatter is apparently better

Tenev described the goal as creating a “lean, hyper-focused team” that empowers employees to make substantial impacts while fostering a high-performance culture.

The specific target here is management layers. Robinhood wants fewer people between the top of the org chart and the people actually building products.

This isn’t Robinhood’s first rodeo with layoffs, either. The company cut roughly 23% of staff in August 2022, following a 9% cut earlier the same year, then trimmed another 7% of the workforce in 2023, primarily driven by a normalization of trading volumes post-2021’s trading frenzy.

Wall Street didn’t seem bothered. HOOD shares ticked up between 1% and 2.5% following the announcement.

Spending big while cutting deep

What makes this round of layoffs particularly interesting is the contrast with Robinhood’s recent spending patterns. The company dropped $180 million to acquire WonderFi, a move designed to expand its international footprint, particularly in the Canadian market.

So the math looks something like this: spend $180 million on international expansion, then cut $28 million in workforce costs to improve efficiency.

What this means for investors

The 47% drop in crypto transaction revenue is the number that should grab your attention. The $28 million in restructuring charges is relatively modest compared to $1.07 billion in quarterly revenue.

Investors should watch two metrics closely: whether crypto trading volumes stabilize in Q2, and how quickly the WonderFi integration starts contributing meaningful revenue.

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