Trading platform Robinhood to cut 10% of workforce in restructuring
The trading platform expects about $28 million in charges as it trims management layers and closes a small number of open roles.
- On Tuesday, Robinhood announced plans to cut 10% of its full-time workforce, or about 290 roles, as the trading platform seeks to operate more efficiently by flattening management layers.
- CEO Vlad Tenev said the company is taking the action "from a position of business strength," citing June month-to-date average daily trading volumes at record levels across equities and options.
- The Menlo Park, California-based company expects to incur about $20 million in severance and benefits costs, alongside roughly $8 million in share-based compensation expenses, while closing remaining open roles.
- "We cannot default to operating as a heavily-layered organization," Tenev said, emphasizing the firm must become a "lean, hyper-focused team" to improve decision-making efficiency.
- To reduce reliance on trading activity that fluctuates with market sentiment, Robinhood has expanded into retirement accounts, wealth management services, and credit cards in recent years.
52 Articles
52 Articles
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Robinhood lays off 10% of staff to flatten its organizational structure
In a Securities and Exchange Commission (SEC) filing on Tuesday, Robinhood said it would cut 10% of its full-time workforce of 2,900 and close a “small number” of open roles. The Menlo Park, California-based financial services platform is joining the ranks of companies that have flattened middle management roles to save costs and slim out bureaucracy. Robinhood CEO Vlad Tenev sent an internal email to staff regarding the layoffs, which the comp…
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