Robinhood plans to cut 10% of its workforce, expecting to incur about $28 million in severance costs

According to a report by Reuters, the trading platform Robinhood announced on Tuesday that it will cut about 10% of its full-time employees, aiming to further enhance the company's operational efficiency through a flatter management structure.

Robinhood CEO Vlad Tenev stated that the current business conditions of the company are very strong, but it is necessary to avoid excessive institutional hierarchy and maintain a lean and highly focused team. It is reported that this round of layoffs is expected to incur about $20 million in employee severance and benefits restructuring costs, as well as about $8 million in stock compensation expenses in the second quarter of this year.

Data shows that from June to now, the average daily trading volume on the Robinhood platform for stocks, options, and prediction markets has been at record levels.