Robinhood Trims Headcount by 10% Amid Crypto Revenue Crunch
Robinhood is cutting 10% of its workforce as it seeks to streamline operations, flatten its management structure, and build a “lean, hyper-focused team.” The move comes after a weak quarter in which crypto transaction revenue fell 34% sequentially to $134 million, showing continued dependence on traders who have become less active in a subdued market. Robinhood said the layoffs are proactive and come from a position of strength, pointing to record June trading volumes in equities, options, and prediction markets. The company expects $28 million in restructuring costs from severance, benefits, and stock compensation. Shares fell about 1% on Tuesday and are down roughly 12% year to date. The cuts may affect crypto-related projects such as European stock tokens and Robinhood Chain. Several other crypto companies have also reduced headcount during the downturn.
