Robinhood reduces workforce by 10%, shares up

Robinhood Markets announced on Tuesday that it will reduce its full-time workforce by approximately 10%, affecting about 290 employees, as part of a restructuring effort. The company said it will also close a small number of remaining open positions. Shares of the online brokerage rose in premarket trading following the announcement.

In a regulatory filing, the company stated it expects to incur approximately $20 million in restructuring charges related to employee severance and benefits, along with roughly $8 million in share-based compensation expenses. These charges are expected to be recognized during the second quarter of 2026. Robinhood said the action was taken from a position of business strength, citing record month-to-date average daily trading volumes in June across equities, options, and prediction markets.

The layoffs continue a pattern of workforce adjustments for the company, which expanded rapidly during the pandemic retail trading boom. Robinhood had approximately 2,900 full-time employees at the end of December. CEO Vlad Tenev told employees the restructuring aims to create a leaner organization and maximize talent density, emphasizing the company's strong...