Robinhood Cuts 10% of Workforce Amid Decline in Crypto Revenue

Robinhood has decided to reduce its workforce by 10%, which amounts to approximately 290 employees, in response to a steep decline in its crypto-related revenue. This announcement was made by CEO Vlad Tenev in an internal message shared on X. Tenev indicated that the company aims to streamline operations and create a more agile organizational structure.

In its first-quarter earnings report from April, Robinhood reported a 34% sequential decrease in revenue from crypto transactions, falling to $134 million from $221 million. This decline reflects waning engagement among crypto traders in what Tenev describes as tepid market conditions. He noted, “Our execution is strong today, but our ambitions require us to continuously raise our own bar.”

At the close of 2025, Robinhood employed around 2,900 full-time staff. The firm plans to incur approximately $28 million in restructuring costs related to severance and other employee benefits as it reshapes its operations. Despite the cuts, Tenev maintains that “Robinhood’s business has never been stronger.” Nonetheless, it remains uncertain how these layoffs will impact Robinhood's future development of crypto-focused products, such as its stock tokens and the Robinhood Chain, which is based on the Arbitrum Ethereum layer-2 scaling solution.

Furthermore, Robinhood’s stock price experienced a 1% decline to $97 following the announcement, marking a drop of approximately 12% for the year to date. This follows a peak valuation of $153 when Bitcoin was at its all-time high of over $126,000 in October.