Robinhood, the trading platform tied to the pandemic retail investing wave, will reduce its staff by 10 percent and take part in tech's shift toward flatter teams.

CEO Vlad Tenev shared the news with workers in a Tuesday memo, stating the business remains robust yet requires a more streamlined setup to handle future expansion. He explained the move to flatten reporting lines and cut head count aims to prevent the creation of a top-heavy structure with too many management tiers.

The executive added that the company plans to keep adding staff in targeted roles while focusing on elite talent and new technologies.

Those affected learned of the changes on Tuesday. Robinhood offered no extra details on impacted groups.

The brokerage joins other large tech names such as Microsoft, Google, Amazon, and Meta in trimming middle management layers to reduce bureaucracy and speed up decisions after the hiring surge of recent years.

Full text of the memo from Robinhood's CEO:

Robinhoodies,

We have chosen to part ways with several colleagues today. Those leaving have been informed and will receive full transition support, including severance packages. These individuals contributed to the strong base we have now, and I thank them for their work.

I want to explain the timing clearly. Our operations are at a peak, yet reaching our full mission scale means we cannot accept a structure with many layers. We need a focused group where each person can deliver real results. Our current performance is solid, but bigger goals require us to keep improving. That is why we are simplifying the organization and cutting total head count by 10 percent.

With our finances in good shape, we are acting early. The aim is to raise talent levels and build a culture centered on top results and strong customer focus. This step opens more paths for skilled team members to advance. We will also hire where needed, put resources into strong talent, and use new technologies to improve our work.

Parting with teammates is never easy. It is the tough side of staying true to our principles of operating lean and holding a high standard.