Robinhood Cuts 10% Of Workforce—Citing ‘Heavily-Layered’ Operations
The trading platform expects about $28 million in charges as it trims management layers and closes a small number of open roles.
- On Tuesday, Robinhood announced plans to cut 10% of its full-time workforce, or about 290 roles, as the trading platform seeks to operate more efficiently by flattening management layers.
- CEO Vlad Tenev said the company is taking the action "from a position of business strength," citing June month-to-date average daily trading volumes at record levels across equities and options.
- The Menlo Park, California-based company expects to incur about $20 million in severance and benefits costs, alongside roughly $8 million in share-based compensation expenses, while closing remaining open roles.
- "We cannot default to operating as a heavily-layered organization," Tenev said, emphasizing the firm must become a "lean, hyper-focused team" to improve decision-making efficiency.
- To reduce reliance on trading activity that fluctuates with market sentiment, Robinhood has expanded into retirement accounts, wealth management services, and credit cards in recent years.
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Attempting to keep brokerage clean and maximize talent density should eliminate about 290 jobs; executive director said that business has never been stronger
Robinhood's note on 10% layoffs shows blaming AI isn't cutting it
Unlike many of his tech industry peers who have cut thousands of jobs citing the need to restructure to make the most of AI, Robinhood's CEO Vlad Tenev conspicuously made no mention of AI in his note about layoffs.
Robinhood layoffs will cut 10% as part of an org chart 'flattening.' Read the CEO's memo.
Robinhood is cutting 10% of its staff amid an organizational "flattening."Taylor Hill/FilmMagicRobinhood said it's laying off 10% of its staff on Tuesday.CEO Vlad Tenev said Robinhood's business "has never been stronger," but it needed an org chart "flattening."The trading app said it will keep hiring strategically despite the cuts. Read the full memo below.Robinhood, the stock-trading app that became synonymous with the pandemic-era's retail-in…
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