Robinhood Markets Inc (NASDAQ:HOOD) announced on Tuesday that it will reduce its full-time workforce by approximately 10%, or about 290 positions, as the online brokerage seeks to streamline operations and flatten its organizational structure.
The company disclosed the layoffs in a regulatory filing, describing the move as part of an effort to maintain operational efficiency despite strong business performance.
According to the filing, the restructuring is expected to result in approximately $20 million in cash-related costs and $8 million in equity compensation expenses, which will be recognized in the second quarter of 2026.
In a message shared with employees and later posted on the social media platform X, Robinhood CEO Vlad Tenev said the company was making the changes proactively rather than in response to financial pressures.
“Robinhood’s business has never been stronger,” Tenev wrote. “But to achieve the massive scale of our mission, we cannot default to operating as a heavily-layered organization.”
Tenev said the company aims to operate as a leaner organization where employees are empowered to make a greater impact.
He added that the restructuring is intended to increase "talent density" and reinforce a culture focused on performance and customer service.
The CEO also noted that Robinhood plans to continue hiring selectively and investing in top talent and emerging technologies.
The layoffs come as Robinhood reports record average daily trading volumes across stocks, options, and prediction markets, according to the company.
Employees affected by the cuts will receive severance and other support during the transition, Tenev wrote.
Shares of Robinhood were up 0.6% at about $99 on Tuesday morning, having fallen about 13% so far this year.