Robinhood Slashes 10% Of Workforce, Says Layoffs Come 'From A Position Of Business Strength'

• Robinhood Markets will lay off 10% of its full-time staff to maintain operational efficiency.
• The restructuring is described as a proactive operational move, despite the firm’s record-breaking average daily trading volumes across stocks, options, and prediction markets.
• Analyst Gautam Chhugani at Bernstein predicts substantial growth in Robinhood’s prediction-market segment due to the ongoing 2026 FIFA World Cup.

Robinhood Markets (HOOD) disclosed on Tuesday that it will cut about 10% of its full-time staff in an effort "to remain lean and disciplined." 

The related restructuring will incur $20 million in cash costs and $8 million in equity compensation costs, which will be accrued in the second quarter (Q2) of 2026, according to a Form 8-K filing. 

The company stated that this adjustment is a proactive operational move, and it also released data showing that the average daily trading volume across its three business lines, such as stocks, options, and prediction markets, has broken records since the start of June.

The ‘record’ framing is consistent with Robinhood’s May data, released in June, which reported equity notional volumes of $315.3 billion (up 75% year-over-year), 231.1 million options contracts which is up 29% year-over-year, and 3.9 billion event contracts traded (up 22% month-over-month), reinforcing Robinhood’s narrative that the layoffs are a culture- and velocity-driven decision, not a response to cost pressures. The filing did not reveal which business units or geographies were affected or give a headcount figure for the underlying workforce.

HOOD stock was up over 2% in pre-market hours. On Stocktwits, it was one of the top trending tickers. Retail sentiment around HOOD improved to ‘bullish’ from the ‘neutral’ zone, while chatter continued to be at ‘high’ levels over the past day.  

World Cup Is Bullish For Robinhood

Bernstein analyst Gautam Chhugani said prediction-market activity linked to the 2026 FIFA World Cup will likely give Robinhood “strong tailwinds,” and called the segment the company’s “fastest-growing product line by revenue since launch” and “largest incremental revenue driver for 2026” in a Monday client note to investors. 

Bernstein estimates that Robinhood’s revenue from prediction markets will surge from $150 million in 2025 to $586 million in 2026, a 286% year-on-year increase, accounting for about 17% of transaction-based revenue and 10% of overall revenue. Much of that is going through Rothera, the CFTC-licensed exchange that Robinhood co-owns with Susquehanna International Group, which has traded around 200 million contracts since its debut in late May.

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