TLDR
- Robinhood shares rise as the firm cuts 10% of staff and trims management layers
- HOOD gains pre-market after Robinhood announces a 10% workforce reduction
- Robinhood expects $28M in charges tied to its latest round of job reductions
- Stronger June trading activity supports Robinhood after a weak first quarter
- Robinhood expands beyond brokerage as it seeks steadier revenue streams
Robinhood (HOOD) stock rose in pre-market trading after the brokerage announced a 10% workforce reduction. The company said the move would cut management layers and support a leaner structure. HOOD traded at $99.34, up 1.22%, after closing 5.29% higher at $98.12.
Robinhood Cuts Jobs as Shares Move Higher
Robinhood plans to cut about 290 jobs, representing roughly 10% of its full-time workforce. The company said the restructuring would simplify operations and reduce internal layers. It also plans to close a small number of remaining open roles.
The online brokerage expects about $28 million in charges linked to the layoffs. That total includes about $20 million in severance and employee benefits. It also includes about $8 million in share-based compensation expenses.
Robinhood expects to record those charges during the second quarter. The company employed about 2,900 full-time workers as of December 31. The job cuts mark another effort to tighten costs while keeping strategic hiring open.
Trading Activity Rebounds After First-Quarter Pressure
Robinhood said June trading activity reached record levels across several areas. The company cited strong average daily volumes in equities, options, and prediction markets. This recovery followed a weaker first quarter, when crypto trading slowed sharply.
In the first quarter, crypto trading revenue fell 47% year over year to $134 million. Transaction-based revenue reached $623 million but missed market estimates. The weaker crypto activity weighed on Robinhood’s quarterly profit performance.
Market conditions improved in recent months as risk appetite recovered. Stronger equity markets also supported retail trading activity across Robinhood’s platform. The company continues to depend on trading volumes, although it now seeks wider revenue sources.
Robinhood Expands Beyond Core Brokerage
Robinhood has pushed into new products to reduce reliance on trading cycles. Its expansion includes retirement accounts, wealth services, and credit card products. These areas support steadier revenue and broaden its customer base.
The company also expanded internationally through its WonderFi acquisition in Canada. That deal allowed Robinhood to launch stock and options trading for Canadian users. It also strengthened the company’s push beyond its core U.S. brokerage market.
HOOD’s pre-market rise showed support for the restructuring plan and stronger trading data. The stock traded near its morning highs despite a small pullback from the session peak. Robinhood now faces pressure to show that leaner operations can support growth.
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