Robinhood cuts 10% of staff, books $28M charges

Robinhood Markets, Inc. is cutting approximately 10% of its full-time workforce and closing a small number of open roles as part of efforts to maintain a high performance culture, accelerate product development, and keep operations lean.

Rhea-AI Filing Summary

Robinhood Markets, Inc. is cutting approximately 10% of its full-time workforce and closing a small number of open roles as part of efforts to maintain a high performance culture, accelerate product development, and keep operations lean. The company expects cash restructuring and related charges of about $20 million for severance and benefits and about $8 million related to share-based compensation, with the accrual recognized in the second quarter of 2026. Management notes this decision comes from a position of business strength, citing June month-to-date average daily trading volumes at record levels across equities, options, and prediction markets, while also warning of potential legal, reputational, financial, and operational risks tied to the reduction in force.

Positive

• None.

Negative

• Workforce reduction and restructuring costs: Robinhood is reducing approximately 10% of its full-time employees and closing some open roles, incurring about $20 million in cash restructuring costs and $8 million in share-based compensation charges, which together represent a meaningful operational change and near-term expense.

Insights

Equity and restructuring analyst

Robinhood announces a 10% workforce reduction with about $28M in related charges.

Robinhood Markets, Inc. is implementing a reduction in force affecting roughly 10% of full-time employees and closing some open positions. The company frames this as supporting a high performance culture and faster product development while keeping the organization lean.

The move triggers estimated restructuring costs of about $20 million in cash severance and benefits and about $8 million in share-based compensation, to be accrued in Q2 2026. These near-term costs may be offset over time by lower operating expenses, depending on future hiring and growth.

Management highlights June month-to-date average daily trading volumes at record levels across equities, options, and prediction markets, indicating strong current activity. They also caution that the workforce reduction may create legal, reputational, financial, and operational risks, and emphasize standard forward-looking statement uncertainties.

8-K Event Classification

Item 2.05 — Costs Associated with Exit or Disposal Activities

1 item

Item 2.05 Costs Associated with Exit or Disposal Activities Financial

The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.

Key Figures

Workforce reduction: Approximately 10% of full-time employees Cash restructuring charges: $20 million Share-based compensation charges: $8 million +2 more

5 metrics

Workforce reduction Approximately 10% of full-time employees Reduction in force announced June 16, 2026

Cash restructuring charges $20 million Employee severance and benefits costs, expected Q2 2026 accrual

Share-based compensation charges $8 million Related to reduction in force, expected Q2 2026 accrual

Trading volumes Record levels (no figure stated) June month-to-date average daily trading volumes across equities, options, prediction markets

Form type Form 8-K, Item 2.05 Costs associated with exit or disposal activities

Key Terms

reduction in force, share-based compensation, record levels, Costs Associated with Exit or Disposal Activities, +1 more

5 terms

reduction in force financial

"announced a reduction in force as part of its efforts to maintain a high performance culture"

A reduction in force is an organized cutback in a company's workforce—commonly known as layoffs—intended to lower costs or reshape operations. Like trimming a household budget or pruning a garden, it can improve long-term financial health but often brings one-time costs, reduced capacity, and morale or execution risks that can affect revenue, expenses, and the company’s stock performance. Investors watch these moves for signals about future profitability and operational stability.

share-based compensation financial

"approximately $8 million related to share-based compensation"

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.

record levels financial

"average daily trading volumes at record levels across equities, options, and prediction markets"

Costs Associated with Exit or Disposal Activities regulatory

"Item 2.05 - Costs Associated with Exit or Disposal Activities"

forward-looking statements regulatory

"This contains forward-looking statements, including with respect to our estimates and expectations"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What workforce changes did Robinhood (HOOD) announce in this 8-K?

Robinhood announced a reduction in force affecting approximately 10% of its full-time employees and closing a small number of open roles. The move is described as supporting a high performance culture, faster product development, and a lean, disciplined operating model.

How much will Robinhood (HOOD) incur in restructuring charges from the layoffs?

Robinhood expects about $20 million of cash restructuring and related charges for severance and benefits, plus about $8 million related to share-based compensation. The company plans to recognize the accrual for these charges in the second quarter of 2026.

When will Robinhood (HOOD) recognize the costs from the reduction in force?

Robinhood expects to recognize the accrual for its estimated restructuring and related charges in the second quarter of 2026. This includes both cash severance and benefits costs and share-based compensation related to the workforce reduction.

Why is Robinhood (HOOD) reducing its workforce while trading volumes are strong?

Robinhood states it is acting from a position of business strength, with June month-to-date average daily trading volumes at record levels. The company says the reduction supports a high performance culture, accelerates product velocity, and helps it remain lean and disciplined.

What risks did Robinhood (HOOD) highlight related to the workforce reduction?

Robinhood cited potential adverse legal, reputational, and financial effects, as well as possible operational disruptions, resulting from the reduction in force. These are presented as part of broader forward-looking statement risks that may cause actual outcomes to differ from current expectations.

Will Robinhood (HOOD) update investors if restructuring costs change materially?

Robinhood stated that if it later determines it will incur additional material restructuring costs or if there are material differences from current estimates, it will file an amendment to this report to disclose those material costs, charges, or differences.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/16/2026 - 06:00 AM Learn about SEC filing dates

0001783879FALSE00017838792026-06-162026-06-16

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 16, 2026

Robinhood Markets, Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-40691

46-4364776

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

85 Willow Road

Menlo Park, CA 94025

(Address of principal executive offices) (Zip Code)

(844) 428-5411

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share			HOOD			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company						☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.						☐

Item 2.05 - Costs Associated with Exit or Disposal Activities.

Workforce Reduction

On June 16, 2026, Robinhood Markets, Inc. (the “Company” or “we”) announced a reduction in force as part of its efforts to maintain a high performance culture, further accelerate product velocity, and remain lean and disciplined. The Company is taking this action from a position of business strength, including June month-to-date average daily trading volumes at record levels across equities, options, and prediction markets.

This reduction in force involves approximately 10% of the Company's full-time employees, and additionally involves the closure of a small number of open roles across the Company. The Company estimates that it will incur cash restructuring and related charges comprising approximately $20 million related to employee severance and benefits costs as well as approximately $8 million related to share-based compensation. It expects to recognize the accrual for these charges in the second quarter of 2026.

If we subsequently determine that we will incur additional material restructuring costs or charges or there are material differences from the amounts provided above, we will file an amendment to this Current Report on Form 8-K (this “Current Report”) to disclose any such material costs, charges, or differences.

Cautionary Note Regarding Forward-Looking Statements

This Current Report contains forward-looking statements, including with respect to our estimates and expectations in connection with the reduction in force. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this Current Report. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; adverse legal, reputational and financial effects on the Company resulting from the reduction in force; and potential operational disruptions as a result of the reduction in force. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Except as otherwise noted, all forward-looking statements are made as of the filing date of this Current Report and are based on information and estimates available to us at this time. Except as required by law, we assume no obligation to update any of the statements in this Current Report whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this Current Report with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						Robinhood Markets, Inc.
Date:			June 16, 2026			By:			/s/ Shiv Verma
									Name: Shiv Verma
									Title: Chief Financial Officer

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