Robinhood Markets Inc. said it will cut about 10% of its full-time workforce, taking roughly $28 million in restructuring charges as it moves to streamline operations and speed up decision-making.
The company expects about $20 million in cash severance and benefits costs and $8 million in share-based compensation, which will be recorded in the second quarter of 2026, according to a regulatory filing.
Chief Executive Vlad Tenev told employees the layoffs are aimed at flattening management layers and improving execution. The company added that it will continue targeted hiring in key areas, describing the move as coming from a position of business strength.
crypto slowdown pressures results
The restructuring follows a sharp decline in Robinhood’s digital asset business. In the first quarter, crypto revenue fell 47% to $134 million, while crypto trading volume dropped 48% to $24 billion. The company attributed the decline to lower market volatility compared with the previous year.
The broader cryptocurrency market has also weakened, with Bitcoin falling to around $61,500 in early June and more than $800 billion wiped from total market value since its late-2025 peak. Market turbulence triggered over $1.1 billion in liquidations in a single day, while U.S. spot Bitcoin ETFs saw about $4.4 billion in outflows during a 13-day stretch from mid-May to early June.
expansion beyond digital assets
Despite softer crypto activity, Robinhood has been expanding internationally and diversifying its business. The company recently completed its $180 million acquisition of Canadian platform WonderFi, adding more than 300,000 funded accounts and bringing its international customer base to over one million.
It is also pushing into prediction markets, a segment that is gaining traction. Bernstein estimates the unit could generate $586 million in revenue in 2026, a 286% increase from the previous year, and account for about 17% of transaction-based income.
Recent data suggests growing activity in this segment, with daily trading volumes jumping sharply in mid-June, coinciding with major global events.
market reaction
Robinhood shares closed at $98.12, up 5.3% in the previous session, and rose a further 1.1% in pre-market trading, signaling a positive response from traders to the restructuring and cost-control measures.
Explore tokenized stocks and crypto market moves on Toobit’s tokenized equities guide for deeper Robinhood-style trading insights.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
