Sophie RobinsonBolt CEO Ryan Breslow told Fortune's Workforce Innovation Summit on 19 May 2026 that he had fired his company's entire HR team because they were "creating problems that didn't exist." In the same restructuring, roughly 30% of Bolt's workforce was cut as part of an AI-driven push. The company, which peaked at an $11 billion valuation in 2022 before falling to an estimated $300 million by 2024, now operates with around 100 employees.
Breslow's candour has sparked a debate in employment circles on both sides of the Atlantic: can a CEO legally fire an entire department with this justification? In the United States, the answer depends largely on state law and individual contracts. In the UK, the answer is substantially different — and the protections are far stronger.
What Happened at Bolt
After returning as CEO in 2025, Breslow gave employees inherited from previous leadership 60 days to prove they could adapt to a leaner, startup-style environment. According to his own account, 99% failed to meet the bar, leading to the replacement of most of the leadership team. He also removed policies including four-day workweeks and unlimited paid time off, which had been introduced under earlier management.
The HR team was then eliminated and replaced with a smaller "people operations" function covering training and employee support. Breslow's stated rationale: the HR department was manufacturing complexity rather than solving genuine people problems.
Could a UK Employer Do This? The Law Says: Not Without Process
In the UK, the dismissal of an entire department — regardless of the reason cited — triggers a web of statutory protections that American executives often find surprising.
Collective redundancy consultation applies whenever an employer proposes to make 20 or more employees redundant within a 90-day period. Under the Trade Union and Labour Relations (Consolidation) Act 1992, the employer must begin consultation with elected employee representatives or trade union officials at least:
- 30 days before the first dismissal (for 20–99 redundancies)
- 45 days before the first dismissal (for 100 or more redundancies)
Bolt's layoffs of 30% of staff — likely well above 20 people — would fall squarely within these rules. Skipping or shortening this consultation period is not a minor procedural failure. It exposes the business to a protective award of up to 90 days' gross pay for every affected employee, awarded by an Employment Tribunal.
The employer must also notify the Redundancy Payments Service (RPS) on form HR1 before consultation begins. Failure to notify is a criminal offence.
What Are Your Individual Redundancy Rights?
Beyond collective consultation, individual employees in the UK have their own statutory protections. If you have been employed for two or more years, you are entitled to:
- Statutory redundancy pay: calculated by age and length of service — 1.5 weeks' pay per year of service if aged 41 or over, one week for each year between 22 and 40, and half a week for under 22s
- Your full notice period or pay in lieu of notice
- A right to appeal the redundancy decision before it takes effect
- Reasonable time off to look for alternative work during the notice period
The government's Redundancy: Your Rights guidance sets out exactly what employers must provide. If an employer fails to follow any of these steps, an Employment Tribunal can order compensation in addition to any protective award.
The Constructive Dismissal Question
One element of Bolt's restructuring deserves particular attention from a UK law perspective: the removal of benefits — four-day workweeks and unlimited paid time off — without employee agreement.
In the UK, if such benefits were expressly stated in employment contracts rather than simply being informal policies, removing them unilaterally could constitute a breach of contract. If that breach makes working conditions intolerable, affected employees may have a claim for constructive dismissal, which allows them to resign and bring a tribunal claim as though they had been unfairly dismissed.
Breslow's statement that 99% of employees "failed to adapt" raises a further question: were employees given a genuine opportunity to meet clearly defined, reasonable performance standards? Or were the targets set at a level that made redundancy inevitable from the outset? In UK law, using a performance management process as a cover for predetermined redundancies is recognised by Employment Tribunals and can lead to findings of unfair dismissal.
AI-Driven Redundancies: A Growing UK Issue
Bolt's layoffs were partly attributed to AI investment reducing the need for human headcount — a pattern now appearing across UK financial services and technology firms. As AI tools take on compliance, risk monitoring, and back-office functions, some employers are concluding that certain team sizes are no longer justified.
This does not change employees' rights. UK law does not create an exemption for AI-related redundancies. Consultation must still occur, notice must still be served, and statutory pay must still be calculated. For more detail on how similar AI-driven redundancies are affecting UK workers, see this guide on how Standard Chartered's 8,000 AI job cuts affect your redundancy rights.
When to Contact an Employment Solicitor
If you are facing redundancy — whether as part of a departmental restructuring, an AI-driven headcount reduction, or a sudden CEO decision — you should speak to a UK employment solicitor if:
- Your employer has not followed a proper consultation process
- Your notice period appears shorter than your contractual entitlement
- Benefits have been removed without your consent
- You believe the redundancy was a pretext for performance management or dismissal on other grounds
- You were asked to sign a settlement agreement without being given time to take independent legal advice
Solicitors specialising in employment law can assess your situation quickly and advise whether a tribunal claim is viable, often on a no-win, no-fee basis. ExpertZoom connects UK workers with verified employment solicitors for an initial assessment — without obligation.
DISCLAIMER: This article provides general information only and does not constitute legal advice. Always consult a qualified solicitor for guidance on your specific employment situation.
