Robinhood Markets cuts 10% of workforce to flatten org structure

(Sharecast News) - US trading platform operator Robinhood Markets revealed on Tuesday that it plans to lay off around a tenth of its workforce in an effort to rein in costs and improve efficiency. The 290 job cuts, which Robinhood expects to result in a $28m restructuring charge, is a consequence of the company's values of being "lean and disciplined" and demanding "high performance".

The California-based firm, which was founded in 2013, said it wants to flatten organisation layers, which have been created as a result of the company's growth over the years.

Chief executive Vlad Tenev said in a statement posted on X that the business "has never been stronger", but the operating model has become "heavily-layered".

"We've made the difficult decision to say goodbye to some of our team members today. Those departing are being notified, and we're offering them full support through this transition, including severance," he said.

"I want to be transparent about why this is happening now. Robinhood's business has never been stronger. But to achieve the massive scale of our mission, we cannot default to operating as a heavily-layered organisation. We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact."

Robinhood futures were up 1.7% at $99.80 in pre-market trading on Tuesday.