MENLO PARK, Calif. — Robinhood said it is reducing its workforce by approximately 10%, affecting about 295 employees, as the fintech seeks to streamline operations and accelerate growth.
According to a filing with the Securities and Exchange Commission, Robinhood said the cuts are intended to help the company “maintain a high performance culture, further accelerate product velocity, and remain lean and disciplined.”
The company, which reported 2,958 employees in its most recent annual report, said it is also eliminating a small number of open positions.
‘Leaner’ Organization Needed
In a statement posted on X, CEO Vlad Tenev said Robinhood’s business performance remains strong despite the layoffs.
“Business has never been stronger,” Tenev said, noting that the company’s month-to-date average daily trading volumes in June have reached record levels across equities, options and prediction markets.
Tenev said Robinhood’s long-term ambitions require a leaner organizational structure.
“To achieve the massive scale of our mission, we cannot default to operating as a heavily-layered organization,” Tenev said. “We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact.”
Robinhood said it expects to incur approximately $20 million in restructuring and severance-related costs, along with an additional $8 million in share-based compensation expenses. The charges will be recognized during the current quarter.
‘Deeply Grateful’
Tenev acknowledged the impact on affected employees.
“These are good people who helped build the foundation we stand on today, and I am deeply grateful for their contributions to Robinhood,” he said.
According to the company, the workforce reduction is part of an effort to increase what Tenev described as “talent density” and maintain an elite performance culture focused on serving customers.
“Our execution is strong today, but our ambitions require us to continuously raise our own bar,” Tenev said.
AI Not Cited as Reason
While several fintech firms have announced layoffs this year amid growing adoption of artificial intelligence and broader efficiency initiatives, Tenev did not cite AI as a reason for the workforce reduction. He said, however, that Robinhood plans to continue hiring selectively and investing in technology.
“We will also continue hiring strategically, investing heavily in top-tier talent and utilizing frontier technologies to push our execution even further,” Tenev said.
