Trading App Robinhood to Cut 290 Jobs in Company Shake-Up

Robinhood, a popular app that lets everyday people buy and sell stocks, said on Tuesday it will cut about 290 jobs. That is roughly 10% of all the people who work there full-time. The company, based in Menlo Park, California, says it wants to run more smoothly by having fewer layers of management. Company leaders believe a smaller, more focused team can make decisions faster and get more done.

Robinhood's CEO, Vlad Tenev, shared the news in a message posted on the social media platform X. He told workers that the company is doing well, but that it needs to change how it is organized. Even though the news sounds encouraging, Robinhood's stock price still fell about 2.5% on Tuesday afternoon. Investors were not fully reassured by the CEO's message.

The company expects the job cuts to cost around $28 million in the short term. These costs will be counted during the second quarter of the year, which covers April through June. Robinhood also said it plans to keep hiring people for certain important roles. It wants to bring in top talent even while it is reducing its overall headcount.

As of the end of last year, Robinhood had about 2,900 full-time workers, meaning around 290 people will lose their jobs. The company said the cuts are not mainly happening because of artificial intelligence, or AI. However, one financial analyst noted that technology is helping the company do more work with fewer people. A leaner structure, he said, is making the company more productive.

Robinhood says it is making these cuts from a position of strength, not because it is struggling. The company reported that its daily trading volumes in June had reached record highs across stocks, options, and prediction markets. That means more people are using the app to trade than ever before. Strong trading activity is a very good sign for a company like Robinhood.

Earlier this year, in April, Robinhood missed its profit goals for the first three months of 2025. That happened partly because the cryptocurrency market was very up and down, which made some traders nervous and cautious. Since then, things have gotten better, with calmer markets encouraging more people to trade. The stock market recovering has been a boost for Robinhood's business.

Everyday investors — sometimes called mom-and-pop traders — often stop trading when markets feel risky or unpredictable. This is a challenge for Robinhood because most of its users are regular people, not big financial firms. To be less dependent on trading alone, Robinhood has been growing into a wider range of money services in recent years. The company wants to earn money in different ways, not just from trades.