Robinhood trims 10% of staff while Tenev insists the party is just getting started 🎉

Robinhood is reducing its full-time workforce by roughly 10%, a move CEO Vlad Tenev framed as a flattening of the company's organizational structure rather than a response to weakening fundamentals. In a statement on X on Tuesday, the trading platform said the layoffs will affect about 290 employees, based on a headcount of approximately 2,900 full-time staff. Robinhood had previously reported roughly 2,900 full-time employees as of Dec. 31, 2025, in its Form 10-K filing with the US Securities and Exchange Commission. A separate Form 8-K filed on Tuesday noted that the reduction in force also includes the closure of a small number of remaining open roles across the company.

The company estimated it will incur about $28 million in total restructuring-related charges, including roughly $20 million for employee severance and benefits and about $8 million in share-based compensation costs. Robinhood said it expects to recognize these charges in the second quarter of 2026.

In an internal memo, Tenev said the company cannot "default to operating as a heavily-layered organization" if it wants to scale its mission, adding that Robinhood must "continuously raise" its performance bar. The company said it is taking the action "from a position of business strength," pointing to June month-to-date average daily trading volumes at record levels across equities, options and prediction markets. Tenev said the company's business "has never been stronger" and described the workforce reduction as a proactive step to improve execution and focus. The announcement did not specifically mention artificial intelligence-driven restructuring, but said Robinhood will continue selective hiring, invest in top-tier talent and "utilize frontier technologies" to improve performance.

The rationale mirrors explanations offered this year by major crypto companies, including US exchange Coinbase and Jack Dorsey's Block, which have also linked layoffs to reducing management layers and improving efficiency. The move follows first-quarter results that missed analyst expectations, with revenue and earnings coming in below forecasts. Crypto trading was a key drag, with volumes down roughly 50% year-on-year, underscoring ongoing volatility in transaction-based revenue streams.