Robinhood Markets is cutting 10% of its full-time employees and shutting down all open job postings, the company announced Tuesday. The move affects hundreds of workers across the trading platform, which grew rapidly during the pandemic-era retail investing boom.
Scope of the cuts
The layoffs will touch roughly 10% of Robinhood's workforce, though the company did not specify exact headcount figures. All remaining open roles have been eliminated, effectively freezing hiring indefinitely. The cuts come as Robinhood faces a slowdown in trading activity after a surge in 2020 and 2021.
Company's recent trajectory
Robinhood had been expanding its team to keep up with a flood of new users during the meme-stock frenzy. But as volatility eased and interest rates rose, daily active users dropped. The company has been under pressure to cut costs and show a path to profitability.
This is not the first round of layoffs for Robinhood. The firm laid off about 23% of staff in August 2022 and another 7% in April 2023. The latest reduction brings the total workforce down significantly from its peak.
What employees are being told
Affected employees will receive severance packages and other support, the company said. Robinhood has not disclosed which departments are hit hardest, but the cuts appear to be company-wide.
The company's CEO, Vlad Tenev, said in a memo to staff that the decision was made to better align the company's structure with its strategy. He did not provide further details on future hiring plans.
