Robinhood to Lay Off 10% of Staff Despite Strong Trading Volumes

Robinhood has announced plans to cut approximately 10% of its full-time workforce, affecting roughly 290 employees. The layoffs are part of a restructuring effort to improve operational efficiency and reduce management layers. CEO Vlad Tenev stated the firm aims to streamline decision-making despite strong business performance, according to Reuters.

The company expects to record approximately $28 million in restructuring costs in the second quarter, covering severance, benefits, and stock-based compensation. While a small number of open roles will be closed, Robinhood will continue selective hiring. Following the announcement, the company's shares fell about 2.5% in afternoon trading.

Robinhood reported record average daily trading volumes in June across equities, options, and prediction markets. The company's prediction markets saw 8.8 billion event contracts traded in Q1 2026. However, net revenue of $1.07 billion for the quarter, while up 15% year-on-year, decelerated from Q4's $1.28 billion, with both revenue and EPS slightly missing analyst expectations.

Amid expanding AI adoption, Robinhood recently launched dedicated accounts allowing customers to deploy AI agents for automated trading. The platform also announced a $1.5 billion share buyback program following a nearly 40% stock decline this year. The company continues to diversify its revenue streams beyond trading, introducing retirement accounts, wealth management products, and credit cards.