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Robinhood trims 10%
Robinhood announced it would reduce headcount by 10% as CEO Vlad Tenev framed the move as a proactive restructuring rather than a sign of weakness.
“Robinhood has a message for workers losing their jobs: The company isn't struggling”
In a memo, Tenev wrote, "Robinhood's business has never been stronger," while saying the company planned to reduce 10% of its workforce.
Business Insider reported Robinhood had 2,900 full-time employees at the end of 2025, citing a February securities filing, as the company prepared to notify departing workers.
Fortune said Robinhood expected to spend about $20 million on severance and benefits and roughly $8 million in additional stock-based compensation costs tied to the layoffs, after a Form 8-K filing released on Tuesday.
Cointelegraph reported Robinhood estimated it would incur about $28 million in total restructuring-related charges, including roughly $20 million for employee severance and benefits and about $8 million in share-based compensation costs.
Memo language and debate
Multiple outlets highlighted that Tenev’s layoff note emphasized organizational layers and performance rather than artificial intelligence, even as other tech leaders used AI as a justification for job cuts.
TechCrunch wrote that Tenev "conspicuously made no mention of AI" in his note to employees announcing that the company is letting go 10% of its full-time employees, or about 290 people.
In the same framing, TechCrunch quoted Tenev saying, "We cannot default to operating as a heavily-layered organization," and argued the language pointed to flatter organizational structures.
ForkLog said Tenev explained the cuts were necessary to simplify the management structure and make Robinhood a "flexible and focused" team, while also saying the changes were preventive.
Crypto Briefing reported that Tenev avoided AI mention in the 10% layoffs note and described the memo’s focus on an "elite performance culture" built around reducing organizational layers.
Trading weakness and costs
Robinhood tied its restructuring to trading performance and recent financial results, with outlets pointing to crypto weakness alongside record activity in other segments.
“Robinhood CEO Vlad Tenev avoids AI mention in 10% layoffs note While tech peers blame artificial intelligence for slashing headcount, Tenev's memo focuses on organizational layers and 'elite performance culture' Every tech CEO cutting jobs in 2026 seems to have the same script: “We’re restructuring for the AI era”
Business Insider said Robinhood’s securities filing stated the cuts come as June’s month-to-date average daily trading volumes hit record levels across equities, options, and prediction markets, while also noting first-quarter cryptocurrency revenue dropped 47% year over year to $134 million.
Fortune reported Robinhood earned $350 million in profit in the first quarter of 2026 and brought in $1.07 billion in revenue, up 15% year over year, even as crypto trading revenue slumped.
Cointelegraph said the company took the action "from a position of business strength," pointing to June month-to-date average daily trading volumes at record levels across equities, options and prediction markets.
Crypto Briefing said the memo’s restructuring charges were expected to be $20 to $28 million in severance and benefits charges, while also describing crypto transaction revenue dropping 47% year-over-year to $134 million.
