(June 16): Robinhood Markets Inc said it’s cutting 10% of its workforce, a reduction of around 300 positions, to “remain lean and disciplined” as it develops new products.
In addition to the cuts, Menlo Park, California-based Robinhood will close a small number of open roles across the company, according to a regulatory filing Tuesday. The firm’s shares were up 1.7% at 7.35am in early New York trading.
Robinhood follows a number of financial-technology firms that have cut jobs in recent months, including Block Inc, Crypto.com, Coinbase Global Inc and PayPal Holdings Inc. While many of those firms pointed to artificial intelligence as playing a part in their elimination of roles, Robinhood said its reduction is intended to help the firm “maintain a high performance culture, further accelerate product velocity, and remain lean and disciplined”.
Robinhood employed 2,958 full-time workers at the end of last year, according to its annual report. More than 2,600 of those staffers were in North America.
The company will have restructuring charges this quarter of about US$20 million ($25.65 million) related to employee severance and benefits costs, and roughly US$8 million linked to share-based compensation, according to Tuesday’s filing.
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