Shares of Robinhood jumped 12.4% in afternoon trading after the financial services company announced it was cutting 10% of its workforce, a move investors interpreted as a margin improvement signal. The restructuring will incur approximately $28 million in second-quarter charges and trims headcount built during an earlier growth phase, with the company citing a focus on maintaining a high-performance culture and accelerating AI-driven efficiency. The market's positive reaction reflects expectations that leaner operating costs will amplify the earnings impact of revenue tailwinds, including the SEC's elimination of the Pattern Day Trader rule, which removed a $25,000 minimum equity requirement that had restricted roughly 25% of Robinhood's funded accounts from active day trading, and record platform traffic driven by SpaceX's market debut, one of the largest IPOs in history for which Robinhood served as a retail distribution channel. The shares closed at $105.78, up 9.5% from the previous close.
Robinhood Markets Inc10% workforce cut signals margin improvement, boosting earnings expectations.
