Robinhood cuts workforce as restructuring charges reach $28 million
Robinhood is reducing about 10% of its workforce as it reshapes management layers and pushes for faster product execution. The company says the move is proactive and comes while it continues hiring in priority areas despite weaker crypto trading activity.
Highlights
- Robinhood will incur approximately $28 million in restructuring charges in Q2 2026, including $20 million in cash severance and $8 million in share-based compensation.
- Q1 crypto revenue fell 47% to $134 million, with crypto trading volume down 48% to $24 billion year-over-year, prompting workforce reductions.
- Robinhood completed the $180 million WonderFi acquisition, boosting its international customer base to over 1 million and targeting growth in prediction markets.
Restructuring plan and expected charges
The move is disclosed in an 8-K filing with the Securities and Exchange Commission, where Robinhood says it expects to record about $28 million in restructuring charges in the second quarter of 2026.Those costs include $20 million in cash severance and benefits expenses, as well as $8 million in share-based compensation charges. CEO Vlad Tenev tells employees the company wants a leaner and more focused team, adding that higher ambitions require Robinhood to keep raising its execution standards.
Tenev says the job cuts are being carried out from a position of business strength. Robinhood also says it plans to keep hiring selectively in areas it considers strategic priorities.
Crypto weakness and expansion beyond trading
The restructuring follows pressure in Robinhood's digital asset business, where softer trading conditions weigh on recent performance. In April, the company misses expectations for first-quarter profit as crypto-driven market volatility affects trading activity.Robinhood reports crypto revenue of $134 million and crypto trading volume of $24 billion, down 47% and 48% from a year earlier, respectively. Even with that decline, the company continues broadening its business beyond core trading operations.
That expansion includes the completed $180 million acquisition of WonderFi, which adds more than 300,000 funded customers from Canada and lifts Robinhood's international customer base to more than 1 million. Prediction markets are also becoming a bigger focus, with Bernstein recently saying Robinhood could benefit from strong tailwinds as volumes hit record levels during the early stages of the FIFA World Cup.
In our earlier coverage of Robinhood’s cost-cutting plan, we noted that the company’s shares rose in premarket trading after it announced a roughly 10% workforce reduction. We also highlighted management’s estimate of about $20 million in severance- and benefits-related charges tied to the restructuring.
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