In a bold move that’s sparking conversations across Silicon Valley, tech startup Bolt has abandoned its unlimited paid time off (PTO) policy, signaling a potential shift in workplace flexibility trends. CEO Ryan Breslow announced the change, critiquing the “flexible vacation” model as fundamentally broken and counterproductive.

The company is replacing unlimited PTO with a mandatory four-week paid vacation policy, a decision rooted in data showing that employees were actually taking fewer days off under the previous system. Research from various sources suggests that unlimited PTO often leads to workers taking less vacation, not more, due to workplace pressure and uncertainty about acceptable time away.

Brelow’s reasoning is straightforward: when time off is undefined, high-performing employees tend to avoid taking breaks, while less engaged workers might exploit the system. This creates an environment of burnout for top performers and perceived unfairness across teams.

The move isn’t unprecedented for Bolt, which previously experimented with and then abandoned a four-day workweek. This latest policy change reflects a growing skepticism among tech leaders about seemingly progressive workplace policies that might not deliver their promised benefits.

Career experts have long criticized unlimited PTO, pointing out that without clear guidelines, employees often feel guilty about taking time off. Additionally, unlike traditional vacation policies, unlimited PTO typically doesn’t require companies to pay out unused days when an employee leaves.

Empower’s 2024 research revealed that workers with unlimited PTO plans took only two days more vacation than those with traditional plans. Another study by Namely found minimal differences in actual time taken off between unlimited and limited PTO policies.

Brelow’s new approach mandates that every employee take their four weeks of vacation, with potential for additional time based on tenure. The company plans to track PTO usage and work directly with managers to ensure employees are actually taking needed rest.

“We’re asking our team to execute at an elite level,” Breslow stated, “and that pace only works when paired with genuine recovery”. As the tech industry continues to evolve its approach to work-life balance, Bolt’s policy shift might signal a broader reevaluation of what truly supports employee well-being.