Robinhood Cuts 10% of Full-Time Workforce — Expects $28 Million in Restructuring Charges

Robinhood announced Tuesday it will cut 10% of its full-time workforce and close the small number of remaining open roles at the trading platform, according to a Reuters report on June 16. The company expects to incur approximately $20 million in restructuring charges for employee severance and benefits costs, plus roughly $8 million in share-based compensation expenses — bringing total expected charges to approximately $28 million. Robinhood expects to recognize the charges in the second quarter. Despite the announcement, Robinhood shares were last up 1.3% in premarket trading — a reaction that suggests investors view the cuts as a cost-efficiency measure rather than a signal of deteriorating business health.