Robinhood announced on Tuesday that it will cut 10% of its full-time workforce, representing approximately 290 jobs. The trading platform also intends to close the small number of remaining open roles.
CEO Vlad Tenev stated that while the firm is in a strong financial position, it has been a heavily-layered organization. The layoffs are intended to flatten management layers, cut costs, and allow the company to work more efficiently. These reductions are occurring even as profits rise and new products like prediction markets help bolster growth.
The company expects to recognize restructuring charges in the second quarter. These include about $20 million for employee severance and benefits costs, as well as roughly $8 million in share-based compensation expenses. Robinhood shares were last up 1.3% in premarket trading.