Robinhood CEO Vlad Tenev just cut 10% of his full-time staff — roughly 290 people — and he didn't once mention AI.
That's weird, because AI has been the go-to excuse for basically every big tech layoff this year. Companies like Google, Microsoft, and Meta have all blamed restructuring for the AI era when they axed thousands of jobs. But Tenev's note to employees conspicuously skipped that script.
Instead, the memo focused on the usual corporate language: streamlining operations, reducing costs, staying competitive. No mention of chatbots replacing humans. No talk of an AI-powered future requiring fewer bodies. Just a straight-up layoff notice.
The timing matters. Robinhood has been struggling since its pandemic-era boom fizzled out. The trading app rode the GameStop meme-stock wave in 2021, then saw revenue crash as interest rates rose and retail trading slowed. The company has already laid off about 23% of staff in 2022 and another 7% in 2023. This latest round brings total cuts to roughly 40% of its peak workforce.
But the real story here is how Tenev is breaking with tech industry norms. When Meta CEO Mark Zuckerberg fired 21,000 people in 2023, he called it the "year of efficiency" and tied it to AI. When Google cut 12,000 jobs, CEO Sundar Pichai said AI was reshaping the company. The message was always: we're not just firing you — we're evolving for the future.
Tenev didn't do that. And analysts say that's actually more honest. Using AI as a cover for layoffs has become so predictable that employees and investors are starting to roll their eyes. A recent survey by Blind, an anonymous workplace app, found that 68% of tech workers think AI is just a convenient excuse for cost-cutting.
"It appears using AI as a cover story for cutting jobs is fast falling out of fashion," noted one industry observer.
Robinhood's stock barely moved on the news — down less than 1% in after-hours trading. That suggests investors had already priced in more cuts. The company has been under pressure to turn a profit after reporting losses in four of the last six quarters.
The laid-off employees will get severance packages, but the company hasn't disclosed details. Robinhood also said it's closing two of its smaller offices, though it didn't say which ones.
For the rest of the tech world, this might be a signal. If one of the industry's most visible CEOs can drop a layoff announcement without the AI crutch, others might follow. Or maybe not — the AI excuse is still a handy way to avoid admitting that your business model just doesn't need as many people anymore.
Either way, 290 people just lost their jobs. And this time, at least their boss didn't pretend it was for their own good.