Online broker Robinhood has laid off 10% of its staff. CEO Vlad Tenev explained that the cuts are 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 him, Robinhood needs to eliminate unnecessary hierarchy to become a "flexible and focused" team.
Tenev emphasized that the brokerage's business is stronger than ever, and the changes are proactive. The goal of the reorganization is to enhance efficiency and allow talented employees to take on more responsibility.
Departing employees will receive severance packages and support during their transition. Meanwhile, Robinhood will continue to hire key specialists and invest in new technologies.
Financial Details
According to a report to the SEC, the costs associated with the layoffs will be around $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 its cryptocurrency division. In the first quarter, the company's profits fell short of expectations due to decreased trading activity. Revenue from cryptocurrency transactions dropped by 47% year-over-year to $134 million, with trading volumes nearly halving.
Despite this, the platform continues to expand. Robinhood completed its acquisition of WonderFi for $180 million, bringing in over 300,000 new clients from Canada and increasing its international user base to 1 million.
Analysts at Bernstein have noted that Robinhood is expected to earn $586 million in prediction markets.