Robinhood Cuts 10% of Workforce, Expects $28 Million Restructuring-Related Charges

Robinhood Markets (NASDAQ: HOOD) announced a fresh round of layoffs this week. The company is cutting roughly 10% of its full-time workforce, with shares ticking up 1.3% in premarket trading following the news. The move is expected to generate $28 million in restructuring-related charges. Robinhood stock closed at $99.29 on June 15, 2026.

The 52-week range spans $63.52 to $153.86, with Monday’s session moving between $96.60 and $100.87. The layoffs follow a rough start to the year for crypto revenue, the company’s most volatile income stream.

Why Robinhood Is Cutting Staff Now

The decision traces directly back to a weak Q1 2026 earnings report.

Robinhood’s Q1 profit rose 3% to $346 million, or $0.38 per share, while net revenue rose 15% to $1.07 billion, both below Wall Street estimates of $382 million and $1.14 billion. Crypto trading fees fell 47% from Q1 2025, driven by a digital asset slump that began late last year.

Markets aren’t celebrating the layoffs themselves; they’re approving management’s willingness to protect margins when the top line isn’t cooperating. That single sentence explains the premarket stock reaction precisely.

Robinhood’s Crypto Problem, By the Numbers

The crypto revenue swing is the clearest driver behind this restructuring decision.

• Q1 2026 crypto revenue: $134 million, down 47% from Q1 2025 
• 2025 full-year revenue: record $4.5 billion
• 2025 diluted EPS: record $2.05; net deposits: record $68 billion 
• Subscribers: over 4.2 million Robinhood Gold members 
• HOOD stock had fallen more than 27% year-to-date at one point in 2026 

Competitive Pressure Adds to the Case for Cuts

Robinhood isn’t just battling crypto volatility; it’s losing pricing power across its core brokerage business.

Traditional brokerages like Charles Schwab and Fidelity have adopted zero-commission trading, eroding one of Robinhood’s original differentiators. Crypto-native exchanges continue competing aggressively for the digital asset trading volume Robinhood is losing. 

That double pressure fee compression on one side, crypto volume loss on the other is the real driver behind the 10% workforce reduction.

What Wall Street Is Watching Next

The key metric to watch isn’t the layoff count; it’s whether Robinhood Gold subscriptions and new revenue initiatives can offset the structural decline in trading-based income. 

Recent developments suggest diversification is gaining traction:

• Robinhood reported May total platform assets of $377 billion 
• The company received regulatory approval to underwrite IPOs, with CEO Vlad Tenev calling it a move to “disrupt” the space.
• Analyst consensus stands at 19 Buy, 5 Hold, and 3 Sell ratings, with a median price target of $97.50 
• KeyBanc holds an higher weight rating with a $100 price target; Deutsche Bank raised its target to $88 with a Buy rating 

The cuts mark Robinhood’s latest attempt to balance cost discipline with its push into prediction markets, banking, and IPO underwriting. Track Robinhood’s filings at sec.gov and live HOOD data at robinhood.com.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.