- Robinhood Markets is cutting 10% of its full-time staff in a “proactive operational move” despite record trading volumes.
- The restructuring will result in $20 million in cash charges and $8 million in equity compensation costs accrued in Q2 2026.
- Analysts see strong growth from its prediction markets segment, driven by the 2026 FIFA World Cup, with revenue projected to surge to $586 million.
Robinhood Markets (HOOD) announced on Tuesday a significant workforce reduction, planning to lay off roughly 10% of its full-time employees to maintain a lean operation. This decision comes according to reports detailing the firm’s strategic restructuring efforts.
Consequently, the company expects approximately $20 million in cash restructuring charges tied to severance and benefits. Meanwhile, the firm insists this is a culture-driven decision, not a response to financial pressure.
Robinhood emphasized its record-breaking performance, with average daily trading volumes across stocks, options, and prediction markets hitting new highs since June. The May data, released in June, showed equity notional volumes soaring 75% year-over-year to $315.3 billion.
Bernstein analyst Gautam Chhugani highlighted the prediction market segment as the company’s “fastest-growing product line by revenue since launch.” He predicts the 2026 FIFA World Cup will provide strong tailwinds for this business line.
Bernstein estimates revenue from prediction markets will jump from $150 million in 2025 to $586 million in 2026. Much of this activity flows through the CFTC-licensed exchange Robinhood co-owns with Susquehanna International Group.
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