Robinhood Cuts 10% of Workforce Amid Crypto Revenue Slump
Robinhood announced Tuesday it is laying off 10% of its employees as it seeks to streamline operations amid a significant decline in cryptocurrency-related revenue.
The reduction in headcount is part of an effort to flatten the company’s organizational structure and foster a “lean, hyper-focused team,” CEO Vlad Tenev informed employees in an internal message shared on X. “We cannot default to operating as a heavily-layered organization,” Tenev stated. “Our execution is strong today, but our ambitions require us to continuously raise our own bar.”
The move comes after Robinhood reported its smallest quarterly profit in a year during the first quarter earnings release in April. At that time, the company also disclosed that revenue from crypto transactions had fallen 34% sequentially, dropping to $134 million from $221 million. This performance underscored the brokerage’s continued exposure to crypto traders, whose engagement has waned amid subdued market conditions. Despite the cuts, Tenev characterized the layoffs as proactive, asserting, “Robinhood’s business has never been stronger.”
Robinhood’s stock price saw a 1% dip to $97 on Tuesday, according to Yahoo Finance. While shares had reached an all-time high of $153 last year, coinciding with Bitcoin’s peak above $126,000 in October, they have since declined approximately 12% year-to-date.
In an SEC filing accompanying its 2025 annual report, Robinhood stated it employed around 2,900 full-time staff, emphasizing its “lean organizational structure.” The impact of these layoffs on Robinhood’s development of crypto-focused products, including stock tokens available to European customers and its Arbitrum-based Ethereum layer-2 scaling network, Robinhood Chain, remains unclear. A Robinhood spokesperson directed inquiries to Tenev’s statement.
In a separate filing on Tuesday, the company indicated it anticipates incurring $28 million in restructuring costs, which will cover employee severance packages, benefits, and share-based compensation. “The company is taking this action from a position of business strength,” Robinhood added, noting that “June month-to-date average daily trading volumes [were] at record levels across equities, options, and prediction markets.”
This year has seen several cryptocurrency firms reduce their workforces amid a prolonged downturn in crypto prices, often termed a “crypto winter.” In March, Crypto.com laid off 280 employees, or 12% of its staff, signaling a pivot toward AI-driven operations. The previous month, Jack Dorsey’s Block announced it would cut over 4,000 jobs, representing more than 40% of its workforce.
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