Robinhood to cut 10% of staff; shares rise in premarket

Robinhood Markets announced a reduction of about 10% of its full-time workforce, roughly 290 employees, in a regulatory filing on Tuesday. The company also plans to eliminate a small number of open roles. Shares rose about 2.5% in premarket trading after the filing.

The filing shows the company expects approximately $20 million in restructuring charges for severance and benefits, plus about $8 million in share-based compensation expense. Robinhood plans to recognize those costs in the second quarter.

Robinhood reported about 2,900 full-time employees at the end of December. The company described the action as taken “from a position of business strength,” and pointed to June month-to-date average daily trading volumes that it said reached record levels across equities, options and prediction markets.

In April, Robinhood posted first-quarter results that included modest profit growth and a 15% revenue increase. The company attributed revenue gains to higher activity in options trading, subscription products and prediction markets, and said the second quarter began with elevated trading volumes.

Analysts have highlighted rapid growth in Robinhood’s prediction markets. One research note tracked daily prediction market volumes rising from $2.2 billion on June 11 to $4.8 billion on June 12 during the World Cup; the analysis projects prediction market revenue could increase from $150 million in 2025 to $586 million in 2026.

The company framed the workforce reduction as a restructuring to align costs with strategic priorities while continuing to expand product lines such as retirement accounts, subscriptions and event-based trading.

The staffing change follows broader reductions across the technology sector this year. Other firms have announced job cuts, and data from Challenger, Gray & Christmas show technology companies disclosed 38,242 job cuts in May and 123,653 year-to-date, a 66% increase from the same period a year earlier; the data also show more than 11,000 planned tech hires in May.