Robinhood stock slides after layoff announcement

Robinhood stock slides after layoff announcement Robinhood stock slides after layoff announcement · TheStreet Pooja Rajkumari Tue, June 16, 2026 at 9:00 PM GMT+2 2 min read HOOD Robinhood Markets (NASDAQ: HOOD) was sliding in the morning market hours after it announced a fresh round of layoffs. At press time, HOOD stock was down 1. 98%, trading near $96.

However, ahead of the morning bell, the stock had gained between 3% and 5% in premarket hours. The Menlo Park–based financial services company offers commission-free trading to retail investors. It spans stock and options brokerage, crypto trading, prediction-market event contracts, advisory, and digital banking.

Related: Veteran fund manager sends harsh warning on crypto bankruptcy, layoffs Cuts land as trading volumes hit records In a filing with the Securities and Exchange Commission (SEC) dated June 16, Robinhood said it will cut roughly 10% of its full-time workforce as it pushes to ship products faster and run a leaner operation. In a post on X , the company shared the internal email sent by CEO Vlad Tenev. "We’ve made the difficult decision to say goodbye to some of our team members today.

Those departing are being notified, and we’re offering them full support through this transition, including severance. " The company stressed it is acting from a position of strength, not distress. Robinhood pointed to June month-to-date average daily trading volumes sitting at record levels across its equities, options, and prediction-markets businesses.

Tenev's email echoed the sentiment, "Robinhood’s business has never been stronger. But to achieve the massive scale of our mission, we cannot default to operating as a heavily-layered organization. We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact.

" The filing did not name crypto among those record-setting categories, even though digital-asset trading has become a meaningful revenue driver for the platform. However, in May, crypto notional trading volume was $12. 2 billion, up just 3% from April and 4% year-over-year, even as equity volume jumped 27% month-over-month.

Robinhood's in-app crypto volume of $5. 9 billion was down 50% from a year earlier, with the segment now leaning on acquired exchange Bitstamp, which handled $6. 3 billion.

Crypto remains core to Robinhood's identity as it bills itself as a "global leader" spanning brokerage, crypto, and private markets. Trending on TheStreet Roundtable: UFC fighters collect crypto bonuses at White House event Anthony Scaramucci unveils Bitcoin target for July Iran-US peace deal sends Bitcoin, XRP surging Restructuring charges and sliding stock Robinhood expects to record about $20 million in cash charges tied to employee severance and benefits, plus roughly $8 million in share-based compensation costs. It plans to recognize the accrual in the second quarter of 2026.

Story Continues The company cautioned that it may file an amended report if restructuring costs run materially higher than estimated. Chief Financial Officer Shiv Verma signed the disclosure. Robinhood also flagged risks from the layoffs, including possible operational disruptions and reputational, legal, or financial effects.

The cuts add the brokerage to a growing list of fintech and crypto-adjacent firms thinning headcount even as markets run hot. Related: Cathie Wood sells her favorite crypto stock despite surge This story was originally published by TheStreet on Jun 16, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.