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As part of its 14% layoff, Coinbase is restructuring to eliminate pure people managers. Leaders are now expected to be individual contributors with 15+ direct reports, a span of control made possible by AI tooling. This signals a shift away from traditional corporate ladders toward flatter, more productive organizational structures.
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Coinbase is eliminating pure people-manager roles, citing AI-driven productivity gains. Leaders are now expected to manage 15 or more direct reports—up from a previous cap of six—while also functioning as individual contributors, signaling a major shift in corporate structure.
Jack Dorsey's decision to cut Block's workforce by 40% is being framed as the first major "AI cut." The stated rationale wasn't poor performance but the increased efficiency from AI tools enabling smaller teams. This move signals to the tech industry that drastic restructuring is now on the table to adapt to new AI capabilities.
Cash App is moving beyond siloed roles like "designer" or "PM." They see three fluid archetypes: DRIs who set vision, ICs who build with high craft, and Player-Coaches who lead teams while remaining accountable for output, eliminating pure "people managers."
Inspired by new AI capabilities, Jack Dorsey is restructuring Block to eliminate traditional middle management. The new model uses 'directly responsible individuals' for outcomes and hands-on 'player coaches,' suggesting a new organizational paradigm driven by AI-augmented efficiency and accountability.
To adapt to AI-driven productivity, Block abandoned large, static feature teams for small squads of 1-6 people that can flexibly move between products. This structure, combined with cutting management layers by over 50%, allows for faster information flow and rapid, AI-powered development cycles.
In an AI-centric company, traditional management layers are replaced by three durable roles: Individual Contributors (builders), Directly Responsible Individuals (owners of outcomes), and Player Coaches (mentors who also build and show, rather than just tell).
Despite massive growth, Applovin executed a 50% layoff in some departments. The goal was to rebuild the organization for an AI-native future by eliminating roles susceptible to automation *before* it happened. This forced faster adoption of new technology and removed potential internal resistance to change.
The exponential increase in individual output from AI tools negates the need for traditional, multi-layered management structures. Cash App flattened its design org to just three layers from the CEO, enabling faster decision-making and adaptation to rapid technological change.
As part of its efficiency drive, Coinbase is mandating a significant cultural shift: the elimination of "pure manager" roles. Every leader is now expected to also be an individual contributor. CEO Brian Armstrong is modeling this behavior by returning to the codebase himself, pushing for a flatter, more hands-on organization empowered by AI.
Powerful AI assistants are shifting hiring calculus. Rather than building large, specialized departments, some leaders are considering hiring small teams of experienced, curious generalists. These individuals can leverage AI to solve problems across functions like sales, HR, and operations, creating a leaner, more agile organization.
