Robinhood is cutting roughly 10% of its full-time employees in a corporate restructuring CEO Vlad Tenev has framed as a push for a "high performance culture."
In a Form 8-K filed Tuesday with the SEC, Robinhood Markets said the reduction in force covers approximately 10% of full-time staff, plus the closure of a small number of remaining open roles. Total restructuring charges are estimated at about $28 million: approximately $20 million in cash severance and benefits and approximately $8 million in share-based compensation costs. The company expects to recognize the charges in the second quarter of 2026.
With Robinhood reporting approximately 2,900 full-time employees as of December 31, 2025, the cut translates to roughly 290 people.
In an internal memo to staff, Tenev said Robinhood cannot "default to operating as a heavily-layered organization" if it wants to scale its mission, and that the company must "continuously raise" its performance bar. The 8-K described the action as coming "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.
The cuts follow Robinhood's first-quarter results, which missed analyst expectations on both revenue and earnings. Robinhood's Q1 2026 10-Q showed crypto transaction-based revenue declined year-over-year, a reflection of softer activity in digital-asset markets through the quarter. Tenev said in a statement that the company's business "has never been stronger," framing the workforce reduction as a proactive step to improve execution.