The brokerage will book $20 million in severance costs as it trims staff to boost efficiency and product speed.
Robinhood announced plans to lay off approximately 290 employees, or 10% of its workforce, citing a need to maintain a high-performance culture and accelerate product development. The move will result in $20 million in severance and restructuring charges, including $8 million in share-based compensation payments.
The reduction follows a broader trend of workforce cuts among trading platforms as competition intensifies. Robinhood’s stock rose over 2% in early trading Tuesday, reflecting investor optimism about the company’s leaner structure. Last year, Robinhood employed around 2,900 workers, down from a peak of over 3,800 in 2021.
CEO Vlad Tenev emphasized the need for a “lean, hyper-focused team” to achieve the company’s mission. The cuts come as Robinhood seeks to monetize high-profile market events, though recent app outages during SpaceX’s IPO raised concerns about scalability.