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Key Takeaways Robinhood is cutting 10% of its workforce as part of a “flattening” meant to avoid a heavily layered organization.
CEO Vlad Tenev is framing the layoffs as a proactive move from a position of strength, insisting that the business “has never been stronger” and that the company is raising the bar.
Robinhood expects to incur tens of millions of dollars in restructuring costs.
Fintech startup Robinhood is cutting hundreds of jobs while insisting that its business “has never been stronger.” Robinhood CEO Vlad Tenev is framing the latest layoffs as a proactive cultural and structural reset toward a “high-performance” organization.
Robinhood said earlier this week that it plans to cut about 10% of full-time staff, about 290 roles, as part of a broader move to “flatten” its organizational chart and strip out management layers. In a memo to employees viewed by Business Insider, Tenev said the company is reducing headcount to avoid becoming a “heavily-layered organization.”
“We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact,” Tenev wrote in the memo. “Our execution is strong today, but our ambitions require us to continuously raise our own bar.”
Robinhood notified affected employees on Tuesday. The company did not specify which teams were affected in the memo.
Regulatory filings viewed by The Wall Street Journal show that Robinhood expects to spend about $20 million in restructuring charges for severance and benefits, plus around $8 million in share-based compensation tied to the cuts. The company plans to recognize these charges in the second quarter and close a “small number” of remaining open roles.
According to filings with the U.S. Securities and Exchange Commission, Robinhood had about 2,900 full-time employees at the end of last year.
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