Robinhood Markets Inc. announced Tuesday it is cutting approximately 10% of its workforce, a restructuring the crypto and stock trading platform expects will result in $28 million in charges. CEO Vlad Tenev told employees the reduction aims to flatten management layers and accelerate product velocity, stating the company must be "a lean, hyper-focused team where every single individual is empowered to make a massive impact." The workforce reduction follows a challenging first quarter in which Robinhood's crypto revenue fell 47% year-over-year to $134 million as market volatility weighed on trading activity.
Robinhood Files $28 Million Restructuring Estimate with SEC
According to an 8-K filing with the Securities and Exchange Commission, Robinhood estimates it will incur $20 million in cash severance and benefits costs and $8 million in share-based compensation charges. The company stated these charges are expected to be recognized in Q2 2026. Tenev noted the workforce reduction is being executed proactively, with Robinhood remaining in a position of business strength and intending to continue hiring strategically in priority areas.
Crypto Revenue Drops 47% Year-Over-Year in Q1
In April, Robinhood missed expectations for first-quarter profit as crypto-driven market volatility weighed on trading activity. The company reported crypto revenue of $134 million and crypto trading volume of $24 billion, down 47% and 48% year-on-year, respectively. The revenue slump occurred amid broader contraction in the company's digital asset business segment.
Robinhood Completes $180 Million WonderFi Acquisition
Despite the revenue decline, Robinhood has continued expanding beyond its core trading business. The company completed its $180 million acquisition of WonderFi, which added more than 300,000 funded customers from Canada and brought its international customer base to over 1 million. Prediction markets have also become a growing focus. Bernstein recently stated Robinhood could see "strong tailwinds" as prediction market volumes reached record levels during the early stages of the FIFA World Cup. The research and brokerage firm projected that Robinhood's prediction market business will generate $586 million in revenue for 2026, marking a 286% year-over-year increase.
Stock Closes at $98.12, Up 5.3% on Monday
Robinhood shares closed at $98.12 on Monday, up 5.3%. The stock is currently up 1.1% in pre-market trading on Tuesday.
FAQ
What did Robinhood announce on Tuesday regarding its workforce?
Robinhood announced Tuesday it is cutting approximately 10% of its workforce as part of a restructuring to flatten management layers and accelerate product velocity. The company expects to incur $28 million in total charges, consisting of $20 million in cash severance and benefits costs and $8 million in share-based compensation charges, to be recognized in Q2 2026.
How did Robinhood's crypto business perform in the first quarter?
Robinhood reported crypto revenue of $134 million and crypto trading volume of $24 billion in the first quarter, representing declines of 47% and 48% year-over-year, respectively. The company missed expectations for first-quarter profit as crypto-driven market volatility weighed on trading activity.
