Robinhood Markets announced Tuesday it is cutting approximately 10% of its full-time workforce, eliminating about 290 positions as part of a proactive restructuring. The move comes despite CEO Vlad Tenev's assertion that the company's business has never been stronger and as the brokerage reports record trading volumes for June across equities, options, and prediction markets.
In a filing with the Securities and Exchange Commission, CFO Shiv Verma detailed that the restructuring will also close a small number of open roles the company had planned to fill. Robinhood expects to record about $28 million in charges tied to the layoffs, including severance, benefits costs, and expenses related to share-based compensation.
Robinhood's stock (HOOD) has declined roughly 16% year-to-date, though it has recovered about 20% over the past month. The company's shares traded lower on the news but remain above their 52-week lows.
In an internal note to employees shared publicly via the company's communications team on X, Tenev said the goal is to flatten the organizational structure and maximize talent density. We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact, he wrote. Our execution is strong today, but our ambitions require us to continuously raise our own bar.
The layoffs come as Robinhood deepens its push into the registered investment advisor space. Earlier this month, the brokerage launched an RIA referral program for advisors who custody with TradePMR, the custodian Robinhood acquired for $300 million in 2024. Early participants include Mather Group and Grimes & Company, which will refer clients with at least $250,000 in assets to advisors.
Robinhood also operates an internal Concierge team staffed with CFPs to serve investors with $1 million or more in assets. At the TradePMR Synergy conference in Washington, D.C. earlier this month, the company disclosed that the Concierge unit now serves nearly 60,000 clients.
The restructuring follows a period of rapid growth for Robinhood, which had about 2,900 full-time employees as of December 31, according to an SEC filing. The company's decision to cut staff while reporting record trading activity echoes similar moves by other fintech firms that have prioritized profitability over headcount growth.
Because our financial position is strong, we are making this change proactively, Tenev added in his note. The aim is to ensure our culture is defined by an absolute elite performance bar and a superlative commitment to our customers.
Robinhood's layoffs come amid a broader trend of cost-cutting in the wealth management industry, though many traditional broker-dealers and RIAs have been adding staff. The company's focus on the RIA channel, including its referral program and Concierge service, signals an effort to capture a share of the high-net-worth market that has traditionally been served by independent advisors and wirehouses.
