Robinhood to Cut 290 Jobs to Streamline Management

Chief Executive Officer Vlad Tenev announced the cuts in a message to staff, characterizing the decision as a necessary step to remove management layers that have hampered efficiency. While the company recorded weak first-quarter results earlier this year—largely driven by a 47% drop in crypto-related revenue—June trading volumes in equities and options have reached record levels. The firm intends to recognize the $20 million in severance and $8 million in share-based compensation charges during the second quarter.

Investors responded favorably to the news, with shares climbing nearly 3% in premarket trading. Beyond the headcount reduction, the brokerage is accelerating efforts to diversify its revenue streams through wealth management, retirement accounts, and credit card offerings. The company also recently expanded into the Canadian market via the acquisition of WonderFi, signaling a push to reduce its historical reliance on volatile U.S. retail trading cycles.