Robinhood cuts 10% of workforce as Tenev touts business strength

Stock and crypto trading platform Robinhood is cutting 10% of its workforce as it restructures its organization, a move the company says will improve efficiency.CEO Vlad Tenev told staff the company is reducing 10% of its full-time employees as part of “flattening” its org structure, according to a statement on X by Robinhood on Tuesday.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 rationale mirrors explanations offered by major crypto companies such as US exchange Coinbase and Jack Dorsey’s Block, which have also linked layoffs this year to reducing management layers and improving efficiency.Layoffs to affect around 290 employeesThe layoffs are expected to affect about 290 employees, as Robinhood currently has approximately 2,900 full-time employees, a spokesperson for the company told Cointelegraph.Robinhood previously reported roughly 2,900 in full-time staff as of Dec. 31, 2025, according to its Form 10-K filing with the US Securities and Exchange Commission.In a separate Form 8-K filed on Tuesday, the company said the reduction in force also includes the closure of a small number of remaining open roles across the company.Source: Robinhood CommsRobinhood 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. The company said it expects to recognize these charges in the second quarter of 2026.Tenev says business “has never been stronger” despite weak Q1 resultsRobinhood 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 that the company’s business “has never been stronger,” adding that the workforce reduction is a proactive move aimed at improving execution and focus.Related: Robinhood enters Canada after $180 million WonderFi acquisitionThe announcement did not specifically mention artificial intelligence-driven restructuring, but said the company will continue hiring selectively, invest in top-tier talent and “utilize frontier technologies” to improve performance.The move comes after first-quarter results 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.Magazine: China’s 107 Bitcoin memory thief, Bithumb CEO booked: Asia ExpressCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.