Key Takeaways
- Layoffs are affecting numerous industries, with middle management roles being significantly reduced.
- Companies are streamlining management layers, viewing excess levels as inefficient, partly driven by AI’s potential.
- AI is predicted to automate many traditional management tasks, potentially reshaping company structures.
- There’s a growing emphasis on self-directed work teams and the importance of self-leadership for all employees.
Companies across many sectors announced workforce reductions in May, according to data tracked by WARNtracker.net and reported by Newsweek. These cuts range from dozens to hundreds of employees per company.
A noticeable trend within these layoffs is the targeting of middle management positions. This isn’t entirely new; leaders like Meta’s Mark Zuckerberg have previously criticized having “managers managing managers” as inefficient.
Other companies, such as Citi, have followed suit by reducing their management layers. A survey by Korn Ferry found that 44% of companies have already cut back on managers, a pattern expected to intensify.
Technology, particularly artificial intelligence, is playing a role. Research firm Gartner predicts that by 2026, AI could help eliminate over half of current middle management roles in about 20% of organizations.
The idea is that AI could handle tasks like resource allocation, goal setting, performance tracking, and even scheduling, potentially automating key parts of a manager’s traditional duties.
However, this shift raises questions about the human element of management, like coaching and interpersonal support. Losing managers can leave remaining employees feeling uncertain and “directionless,” as Korn Ferry research indicates.
Beyond just cutting roles, many organizations are exploring self-directed work teams. This approach emphasizes training employees in self-leadership, creating new ways for teams to make decisions and manage performance.
This focus on self-direction comes amid concerns about declining employee engagement. Gallup reports engagement has dropped, impacting productivity significantly worldwide. Improving engagement is vital for business success.
Some experts, cited in Harvard Business Review, argue middle managers aren’t disappearing but evolving. Their future role might focus more on fostering collaboration and inspiring teams, possibly within these more self-directed structures.
For employees, adapting means developing “manager-proof” skills, according to Forbes. This involves taking ownership, identifying necessary tasks and resources, and communicating ideas effectively within a team setting.
Ultimately, clear communication about company purpose is crucial for leaders aiming to boost engagement. For individuals, aligning personal purpose with their work and embracing self-leadership is key to navigating the changing job market.
As middle management shrinks, the ability to lead oneself and contribute effectively in flatter, more autonomous teams has never been more critical for career growth and organizational success.
