In the wake of sweeping corporate restructuring, America is experiencing a significant shift in its workplace hierarchy, with middle management facing a particularly tough challenge, Business Insider reports.
This “flattening” trend has led to a dramatic reduction in supervisory roles, a move championed by some of the country’s largest companies, including Meta, Citi, UPS, and Amazon.
Over the past two years, major firms have trimmed layers of management, reducing the need for middle managers who traditionally oversaw teams and coordinated projects. Meta, for instance, moved from 13 layers of management to just eight, while Citi slashed its managerial ranks significantly. UPS has cut 12,000 managerial positions, and Amazon has pledged to increase the ratio of workers to supervisors by at least 15%.
Corporate leaders like Elon Musk and Amazon CEO Andy Jassy have criticized bureaucracy, with Musk even extending this vision of efficiency into government.
“I hate bureaucracy,” Jassy remarked.
He embraced the notion that fewer management layers can lead to faster decision-making and improved operational efficiency. This focus on efficiency has led many companies to adopt a model that reduces middle management as part of their corporate strategy.
The impact of these changes is clear: thousands of middle managers have lost their jobs, and according to workforce analytics data from Revelio Labs, these positions may not be coming back anytime soon. Hiring for middle-management roles has continued to plummet, with postings down 43% since April 2022. In contrast, job openings for junior-level positions have only seen a modest decline, showing that the demand for traditional managerial roles has evaporated.
This dramatic reduction in middle-management positions is not a new concept. The push to flatten corporate structures began in the 1980s, driven by globalization and the need for cost efficiency. Supervisors were often seen as redundant, and cutting these positions was seen as a way to streamline operations. However, many studies suggest that middle managers, when properly utilized, play a crucial role in enhancing company performance by motivating teams, communicating across departments, and spotting new opportunities.
Despite these findings, the trend of flattening continues, leaving many displaced middle managers in a difficult position. As they search for new roles, they face a job market with far fewer opportunities at their previous level. In some cases, experienced managers like “Rick,” a 54-year-old former middle manager, have been forced to apply for entry-level positions, only to be rejected for being overqualified. The irony of this situation is that the very experience these individuals bring to the table is often seen as a disadvantage in today’s competitive job market.
While many CEOs insist that the flattening of management will lead to stronger, more agile companies, the reality is that fewer managers have placed an enormous strain on operations. Companies are beginning to feel the pressure as the remaining supervisors are tasked with managing larger teams, often leading to burnout. At the same time, the lack of mentors has resulted in disengagement among younger workers, and departmental silos are becoming more entrenched.
