Robinhood (HOOD) Cuts 290 Jobs Despite Strong Performance, Cites Efficiency Push

Robinhood Markets (HOOD) announced June 16, 2026, it will eliminate approximately 10% of its workforce, affecting 290 full-time employees and canceling unfilled positions. The restructuring aims to flatten management layers and boost operational efficiency despite robust business metrics. The company expects $28 million in Q2 charges, including $20 million in severance and benefits and $8 million in stock-based compensation. CEO Vlad Tenev stated the fintech platform is operating at peak performance levels but must maintain a lean structure to sustain growth. Robinhood employed roughly 2,900 full-time staff at year-end 2025. Trading volumes for stocks, options, and prediction markets hit all-time highs in June 2026, reflecting sustained retail investor activity. First-quarter revenue rose 15% year-over-year, driven by prediction market fees and subscription growth, though cryptocurrency volatility pushed profits below analyst estimates. The firm continues diversifying beyond trading commissions through retirement accounts, wealth management, and credit card products. Shares climbed 3% in premarket trading to $100.50 but remain down 13% year-to-date.