The tech industry no longer dares to pass the buck on AI? Robinhood lays off 10%, internal memo reveals Silicon Valley's "new excuse" for downsizing

A well-known U.S. fee-free trading platform, Robinhood, announced layoffs of 10% of its employees (about 290 people). Notably, in an internal email, CEO Vlad Tenev cited “organizational streamlining and flattening,” and did not mention the term “AI,” which has recently been the favorite word used in Silicon Valley layoffs. External media analysis suggests that as public sentiment toward AI becomes more negative, companies are quietly changing the wording and strategies behind layoffs.
(Background: The AI layoff wave becomes a social powder keg! Silicon Valley posts record profits yet cuts nearly 150,000 jobs, with the wealth gap pressing toward Occupy Wall Street)
(Background added: Ubisoft shuts down 2 more studios, lays off 380 people! The sixth wave of downsizing after the NFT dream)

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• Avoids mentioning AI! Switches to “frontier technology” and “organizational flattening”
• Silicon Valley’s new trend: streamlining teams into an “all-purpose” cutback
• Record-breaking revenue still sees layoffs; restructuring is estimated to cost $28 million

As the wave of artificial intelligence (AI) sweeps across the globe, many tech giants have carried out large-scale layoffs under the banner of “embracing AI to improve productivity.” However, this PR approach that directly attributes personnel reorganization to new technology appears to be quietly shifting. According to the latest report by foreign media outlet TechCrunch on June 16, 2026, popular U.S. trading platform Robinhood has recently announced layoffs of 10% of its full-time employees (about 290 people), but its internal notification reveals an entirely different message.

Avoids mentioning AI! Switches to “frontier technology” and “organizational flattening”

Earlier this year, many tech companies, when laying off thousands of employees, clearly stated that the purpose was “to restructure teams to fully leverage AI.” However, in Robinhood CEO Vlad Tenev’s internal layoff letter to employees, the word “AI” is completely absent. Instead, he chose to describe the company’s tools for boosting execution in the future as “frontier technologies.”

In the letter, Tenev points to efficiency and structure as the core reasons for the layoffs: “We can no longer assume that we need to maintain an organization with multiple layers. We must become a lean, highly focused team, so that every employee can have a tremendous impact.”

The report’s analysis suggests that this intentional avoidance of AI is not a coincidence. Because negative sentiment in U.S. society toward AI replacing human workers, as well as the high energy consumption brought by data centers, is rising rapidly, even though top tech executives still profit handsomely from AI development, “AI caused the layoffs” is evidently no longer a pleasant and effective excuse when facing the public and employees.

Silicon Valley’s new trend: streamlining teams into an “all-purpose” cutback

In fact, “streamlining teams and reducing bureaucracy” has become the mainstream narrative for layoffs in the tech industry. Well-known companies including Amazon, Block, Coinbase, GitLab, and Intuit have all adopted public-relations language that is highly similar in their recent staffing adjustments. These companies argue that in an era where automation tools can significantly enhance productivity, large teams and departmental “silos” have become unnecessary, heavy costs.

However, many macro market perspectives point out that the true core reason behind this round of layoffs is actually a historical correction for “over-hiring” during the COVID-19 pandemic. Now, in order to cope with increasingly high operating costs and the massive capital expenditures required to invest in AI infrastructure, companies have no choice but to significantly shrink their organizations.

Record-breaking revenue still sees layoffs; restructuring is estimated to cost $28 million

Although layoff news keeps coming out, these tech companies’ overall financial performance is unusually strong. From tech stocks surging and revenue hitting historical highs, to a clear improvement in gross margin rates and a surge in demand for cloud services, the entire industry appears to be thriving.

Taking Robinhood itself as an example: the company’s revenue grew significantly by 15% in the first quarter, and with the increase in expected transaction fees in the prediction market, subscription revenue, and trading volumes in stocks and options, the outlook for the second quarter is even more optimistic. In this round of layoffs, Robinhood also closed a small number of open positions; according to the regulatory filings it submitted, this layoff plan—officially described as a “restructuring action”—is expected to generate related severance and transition costs of approximately $28 million.