Robinhood shares rise after company says it will cut about 10% of staff
The online brokerage plans to eliminate about 290 roles, close most remaining open positions and take roughly $28 million in second-quarter charges as it streamlines management rather than framing the cuts around AI.
Reuters reports Robinhood will cut 10% of its full-time workforce (~290 roles), matching the claim's headline and headcount. Reuters details ~$20M in restructuring charges plus ~$8M in share-based compensation recognized in Q2, summing to ~$28M, exactly matching the claim's 'roughly $28 million in second-quarter charges.' Crypto.news and Barron's independently corroborate the 10%/290 figures and the management-simplification rationale. The claim's stated facts are all supported by primary reporting.
Robinhood said it will cut about 290 jobs, or roughly 10% of its full-time workforce, close its few remaining open positions and record about $28 million in second-quarter charges. The company said the move is aimed at simplifying its management structure by streamlining management layers, while a note from CEO Vlad Tenev, as described in the source, framed the layoffs around organizational efficiency rather than artificial intelligence. Shares rose about 1% in premarket trading after the announcement, as Robinhood faces weaker crypto trading activity and tougher competition.
- restructuring charges: Costs tied to organizational changes such as layoffs, severance and related benefits.
- stock-based compensation: Employee compensation awarded in shares or share-linked incentives.
- premarket trading: Trading in a stock before the regular market session opens.