A Bolt of Energy - How I Would Counsel Frustrated Leaders

If you’re in the HR world, you’ve almost certainly heard by now that Ryan Breslow, founder and CEO of fintech startup Bolt, completely eliminated his Human Resources department. The key tagline repeated was that HR was “creating problems that didn’t exist.” Following a magazine interview, Breslow confirmed on LinkedIn that Bolt got rid of its HR team, doubling down by stating traditional HR brings the “wrong energy.” Interestingly, he followed this claim by explaining Bolt now has a People Operations team to support and train employees.

Naturally, many in my network responded with all the ways this move would backfire, and largely, I agree. At the same time, some startup leaders share Breslow's frustrations, and I completely understand why. While it is easy to dismiss Breslow’s move as a reckless stunt, it exposes a deep-seated, systemic friction between traditional HR practices and fast-moving, lean startup cultures. To get ahead of it, as HR leaders who want to help our supported businesses succeed, we need to analyze the real problems and build strategically to support the speed of the business.

What Do We Know?

Breslow’s decision didn't happen in a vacuum. Bolt is operating in a pressure cooker. After founding the company in 2014, he led it to an $11B valuation in just eight years (maybe I should take some tips from him). He stepped down, and by 2024, the valuation plummeted by 97% to $300M. During this time, Bolt experienced multiple layoffs and, according to Breslow, reckless spending. Now, less than two years after returning as CEO, he is overseeing a significantly leaner workforce, estimated at a couple hundred employees. His core argument is that at this smaller scale, a multi-layered HR team is an unnecessary overhead expense that slows down product and engineering.

What Do We Not Know?

Public statements give us the narrative but leave key operational questions unresolved. If I were supporting Bolt during this transition, here is what I would want to know:

• What kind of problems were being created? First and foremost, HR looks to mitigate risk. Were the "problems" actually valid risks? Unconfirmed reports indicate sudden pay structure changes and unpaid contractors. Even if this happened just once, HR likely raised the issue as problematic, but perhaps failed to articulate the consequences in a way the founders valued.

• What was the root of these risks? Breslow believes problems were created to justify headcount increases. Possibly. I’ve seen HR implement solutions that were frankly much more troublesome than the root issue, inadvertently aggrandizing the problem.

• What is the difference between HR and "People Operations"? Breslow is right that a scaled-down company doesn't need a massive HR department. However, managing people operations—like training and development—is a core HR function. By retaining a People Ops team, he acknowledges HR is still vital. I would bet this scaled-down team still handles payroll, benefits administration, equity, compliance, and onboarding, either through full-time employees or fractional consultants.

Where the Bolt CEO is Right

To fix HR in a company similar to Bolt, we have to admit where it often fails startups. We must acknowledge that HR professionals can over-index on risk aversion, creating rigid, corporate policies that feel arresting.

I remember one HR department implementing a new transfer policy to reduce bad hires. The problem? They were trying to improve a metric that was already successful, shifting the bad hire rate from 5% to 4% (I am making the numbers up here - but it was something along those lines). The result was immense frustration from employees who faced new career development hoops, and hiring managers who needed third-party evaluators and expressed frustrations and prolonging an already time-consuming hiring process.

When HR focuses entirely on policing rather than partnering, they become a bottleneck. Creating processes just to justify their existence actively kills the high-autonomy culture startups need to scale. In a large company, this can often be mitigated as the HR department becomes multi-layered and areas of responsibility are clear. But in a start up, these behaviors can become suffocating.

Where the Bolt CEO is Wrong

Getting rid of HR because they are creating problems is like getting rid of your home’s smoke alarms because the ones you have are too sensitive. Sure, you don’t have the noise annoying you anymore, but you’re setting yourself up for a catastrophe.

A better approach is replacing the current system with one aligned to your needs—moving the alarm further away from the stove, replacing the alarms with ones that recognize the difference between burned toast and an unattended pot roast. Restructure the team to be led by a business-centric Chief People Officer, align HR goals with business goals, and challenge the department to propose solutions rather than just raise issues. Work with the HR teams to maximize efficiency, create processes that are low effort for employees to learn and implement, and ensure the team is consistently aligning its work to business strategy. Scorching the entire department signals a lack of leadership nuance and chooses a headline-grabbing stunt over strategic management.

If It Were My Client

I would recommend a frustrated founder build a “business-first” People team.

• Tie strategy to outcomes: The HR team should work with operations to build lean, high-trust frameworks matching the company’s current lifecycle.

• Develop a feedback loop: Founders must realize that labor laws, equity management, and workplace safety are guardrails keeping them out of court and legal liability. HR leaders must think like founders, present solutions aligned with the vision, and clearly articulate trade-offs so compliance isn't mistaken for "Wrong Energy."

• Audit for process bloat: Create a culture where employees can recommend improvements, look for ways to streamline policies, and execute clear communication strategies for change.

In a later blog post, I’ll go into more detail on how I got into Talent Development and Management, but I do remember being in a counseling session in grad school where someone suggested I consider HR as my field, and my immediate response was “you mean the policy police?” It’s clear that Ryan Breslow - and many other business leaders - have this same mindset. I love working with such leaders, and, just as I was introduced to what good HR (or people operations, or talent) looks like, help leaders see where the value lies, and how we can work together to build an HR team that helps drive the business forward.

Are you looking to scale and are unsure how your people operations could help? Set up some time for a free consult!