Robinhood To Cut 10% of Workforce, Cites Efficiency—Not AI
By CU Today Staff —
MENLO PARK, Calif.—Robinhood Markets is eliminating approximately 10% of its full-time workforce, or about 290 positions, as part of a restructuring aimed at flattening management layers and improving operational efficiency, even as the online brokerage says business performance remains strong, Reuters reported.
In a memo to employees, CEO Vlad Tenev said “Robinhood’s business has never been stronger,” but argued the company could not continue operating as a heavily layered organization. Tenev said the company wants to remain a “lean, hyper-focused team” and increase what he called “talent density,” while continuing to invest in key hires and new technologies.
Robinhood disclosed in a securities filing that it expects to incur approximately $28 million in restructuring charges during the second quarter, including severance, employee benefits and share-based compensation costs. The company had roughly 2,900 employees at the end of 2025 and said a small number of open positions will also be eliminated, Reuters said.
Notably, Robinhood did not cite artificial intelligence as a reason for the layoffs, a departure from several recent technology-sector workforce reductions that have been linked to AI-driven productivity gains. Instead, the company pointed to organizational streamlining and performance goals, while highlighting record June trading volumes across equities, options and prediction markets as evidence of its continued growth, Reuters added.
Originally reported by CU Today.