Online broker Robinhood has slashed 10% of the state to simplify governance and eliminate unnecessary hierarchy. CEO of the company Vlad Tenev called changes a preventive measure aimed at increasing flexibility and efficiency of business, stressing that the fundamental performance of the company is stronger than ever. Restructuring costs will amount to approximately $20 million in severance pay and another $8 million in share compensation, which will be reflected in the second quarter’s report.

The reorganization is taking place amid a noticeable decline in the crypto division of Robinhood. In the first quarter, revenues from digital-asset transactions fell by 47% year on year - to $134 million due to lower trader activity, resulting in below-market earnings. Nevertheless, the company continues to expand strategically: Robinhood recently closed a deal to purchase the Canadian WonderFi platform for $180 million. This acquisition added more than 300,000 new clients to the broker and increased its international user base to 1 million.

Despite the state’s optimization and temporary difficulties in cryptocurrency, analysts remain positive about the broker’s new business directions. Previously, Bernstein’s experts had predicted that Robinhood could earn $586 million in rapidly growing forecasters' markets.