Robinhood’s observation about 10% layoffs shows that blaming AI doesn’t solve the problem

Using AI as a cover story for cutting jobs seems to be fast going out of fashion.

Unlike many of his peers in the tech industry who did Thousands of jobs eliminated this year Citing the need to restructure their teams to make the most of AI, Robinhood CEO Vlad Tenev did not explicitly mention AI in his book. Note to employees Announcing that the company will lay off 10% of its permanent employees, or about 290 people.

Nor the company’s regulatory Deposit Announcing the move, it instead framed the cuts as a restructuring exercise.

However, Tenev said the company will use “leading-edge technologies to push our implementation even further,” which seems like a conscious effort to avoid the AI ​​label. And this is not surprising: feelings Against artificial intelligence and related infrastructure projects Trending downward Even as a small minority of technology executives do so Ridiculous bank.

But Tenev added to the ongoing narrative that it is now necessary for companies to operate with smaller teams and “flatter organizational structures,” writing: “We cannot default to operating as a densely layered organization. We must be a lean, hyper-focused team where every individual is empowered to make a massive impact.”

We have seen companies of all stripes, from… Amazon, roadblock, Coinbase, getlaband Intuit Similar language is used in layoff announcements, suggesting that large teams, bureaucracy and siled departments are now viewed as undesirable elements at a time when AI tools promise to dramatically improve productivity.

Some even think it’s an implicit reference to the fact that technology companies Over-employment After the Covid-19 pandemic, they are now being scaled back as expenses begin to pile up – especially those associated with the extensive use of artificial intelligence.

Regardless, these companies are performing very well. Technology stocks rose broadly, driven by record numbers Revenueand improve profit margins (GitLab reported 88% gross profit margin Last month, demand increased dramatically Cloud servicesAnd the belief that the billions being pumped into data center projects will do just that Producing higher returns of scale.

Robinhood itself I mentioned A 15% improvement in first-quarter revenue in April, and the company said the second quarter looks better thanks to higher expected market fees, subscription revenue, and strong stock and options trading volumes as markets stabilize.

The company said Tuesday that it would also close a “small number” of open roles, and that it would incur about $28 million in costs related to the reductions.