It seems the tech industry is abandoning its old trick of blaming artificial intelligence (AI) for job cuts. Robinhood's CEO Vlad Tenev made no mention of AI in his recent announcement that 290 employees would be let go – a move that constitutes around 10% of the company’s workforce.

Instead, Tenev framed it as a restructuring exercise, highlighting the need for leaner teams and 'hyper-focused' operations. This is part of a broader trend seen in layoff announcements from companies such as Amazon, Coinbase and GitLab, where large teams and bureaucracy are increasingly viewed unfavorably.

While some see this as an indirect acknowledgment that tech companies overhired during the pandemic, others believe it’s simply a pragmatic response to rising costs. Regardless of motive, these layoffs coincide with robust financial performance for many tech firms – stock prices have surged and revenues are at record levels.

The reality is, despite the hype around AI, big tech still needs human talent for critical roles. As Tenev noted, every individual must be empowered to make a ‘massive impact’. It’s clear that while automation promises efficiency, it can’t entirely replace the value of human expertise in strategic decision-making.