Online broker Robinhood has laid off 10% of its workforce. CEO Vlad Tenev explained the cuts were necessary to simplify the management structure.
Our CEO Vlad Tenev shared the following note with our team at Robinhood today:
Robinhoodies,
We’ve made the difficult decision to say goodbye to some of our team members today. Those departing are being notified, and we’re offering them full support through this transition,…
— Robinhood Comms (@RobinhoodComms) June 16, 2026
According to Tenev, Robinhood needs to eliminate unnecessary hierarchy to become a “flexible and focused” team.
Tenev emphasized that the broker’s business is currently stronger than ever, and the changes are preventive. The reorganization aims to increase efficiency and allow talented employees to take on more responsibility.
Laid-off employees will receive severance pay and support in transitioning to new roles. Meanwhile, Robinhood will continue hiring key specialists and investing in new technologies.
Financial Details
According to a report to the SEC, the costs of the layoffs will amount to approximately $20 million. An additional $8 million will be allocated for stock-based compensation. Robinhood plans to reflect these expenses in the second quarter.
The restructuring comes amid a downturn in the crypto division. In the first quarter, the company’s profits fell short of forecasts due to decreased trading activity. Revenue from cryptocurrency operations dropped 47% year-over-year to $134 million, with trading volumes nearly halved.
Despite this, the platform continues to expand. Robinhood completed the acquisition of WonderFi for $180 million. The purchase brought the broker over 300,000 new clients from Canada, increasing its international user base to 1 million.
Earlier, analysts at Bernstein stated that Robinhood will earn $586 million from prediction markets.
