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.

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.

Don't think of AI as replacing roles. Instead, envision a new organizational structure where every human employee manages a team of their own specialized AI agents. This model enhances individual capabilities without eliminating the human team, making everyone more effective.

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.

AI tools boost individual productivity so much that dedicated middle managers become obsolete. The new organizational structure demands that all leaders are also "doers" who spend most of their time on individual contributions, flattening hierarchies and making everyone a contributor.

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).

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.