Corporate organizational charts are undergoing a significant transformation, a trend experts call "The Great Flattening." This shift, driven by widespread layoffs and the integration of artificial intelligence, is drastically reducing the number of middle managers. As a result, the remaining managers are facing unprecedented workloads, often overseeing three times the number of employees they did a decade ago.
This restructuring is placing immense pressure on the critical relationship between managers and their teams. With expanded responsibilities and less time for individual support, companies risk eroding employee trust, engagement, and mental well-being, potentially leading to higher turnover among both managers and staff.
Key Takeaways
- U.S. managers now oversee three times more staff compared to 2015, according to Gartner.
- Companies like Google and Intel have significantly cut management positions, with reductions of 35% and 50% respectively in certain divisions.
- Job advertisements for middle management roles dropped by 42% between late 2022 and late 2024.
- Gartner predicts that by 2026, 20% of U.S. companies will use AI to eliminate approximately 50% of their management roles.
- The increased workload threatens essential functions like mentorship, employee support, and overall team morale.
The Data Behind the Shift
The trend of shrinking management layers is supported by clear data. A report from Gartner highlights that the average U.S. manager's team size has tripled since 2015, a direct consequence of corporate restructuring. This isn't an isolated trend; major technology companies are leading the charge in delayering their organizations.
For example, Google recently reduced its small team manager positions by 35%, and Intel slashed its management headcount by 50%. These actions reflect a broader pattern. Over the last three years, while overall workforces have been cut by 3.5%, management positions have seen a much deeper reduction of 6.1%.
By the Numbers
The hiring pipeline for managers is also contracting. At the end of 2024, companies were advertising 42% fewer middle management positions than they were just two years earlier. This indicates a long-term strategic shift away from traditional hierarchical structures.
Artificial intelligence is expected to accelerate this change. Gartner forecasts that within the next two years, one-fifth of American companies will leverage AI to further flatten their organizational structures, potentially cutting half of all management positions in the process.
The Human Cost of a Thinner Management Layer
While companies aim for efficiency, the reduction in managers has significant consequences for the remaining leaders and their teams. The core link between employees and the broader organization is being stretched to its breaking point.
Jessica Weiss, a workplace culture consultant based in New York City, explained the direct impact. "Recent and ongoing layoffs have thinned out management, and that’s left remaining managers struggling," she said. Weiss noted that a manager's influence on an employee's well-being is substantial.
"Your manager affects your mental health more than your doctor or therapist and just as much as your spouse," Weiss stated. "When companies stretch managers so thin they can barely keep up with their current team... they're basically destroying the relationship that most determines whether you're happy, satisfied, and engaged at work."
This strain risks a cascade effect. "You can't triple someone's responsibilities and expect them to maintain those meaningful connections that make people want to stay," Weiss added. The result could be an exodus of both valuable managers and the employees they can no longer adequately support.
Expanded Roles Without Expanded Resources
The responsibilities of a manager have not decreased; in fact, they have grown more complex. Sabria Sciolaro, Chief People Officer at Firstup, observed that managers are now expected to fulfill multiple roles simultaneously.
"Managers are now expected to be strategists, coaches, communicators, and morale-keepers, often without the resources to do it all effectively," Sciolaro said. "That’s creating a real risk: when the most trusted link between employees and leadership falters, trust, clarity, and engagement go with it."
Mentorship at Risk
One of the first casualties of an overloaded manager is mentorship. Neil Morrison, Global Chief People Officer at Staffbase, pointed out that effective guidance requires dedicated time and focus, which are now scarce commodities. "Mentorship requires time, presence, and dialogue, and those are the first things squeezed when managers’ calendars are packed," he said. While transparent communication can help, Morrison cautioned, "It’s not a replacement for mentorship, but it ensures employees don’t feel left to navigate alone."
Strategies to Support Overburdened Managers
Addressing the burnout and strain on managers is becoming a critical priority for corporate leadership. Experts suggest several practical strategies that organizations can implement to alleviate the pressure.
- Automate Administrative Tasks: Managers often spend significant time on routine communications and administrative follow-ups. Sciolaro suggests using technology to automate these processes. "Automating routine communication frees them to spend more time on coaching and problem-solving," she explained. This allows managers to focus on high-value, human-centric interactions.
- Prioritize and Protect Team Focus: Managers must learn to filter out non-essential demands. Corporate leadership expert Selena Rezvani advises managers to "heavily vet projects before they say yes, push back on everything being treated as an emergency, use direct language to set priorities, and say 'no' as protection for your team.” This approach helps prevent team burnout and maintains focus on critical goals.
- Communicate Upwards with Data: Stressed managers should voice their concerns to senior leadership, but in a constructive way. Jason Leverant, President and COO at AtWork Group, recommends using facts and data rather than simply complaining. "Suggest process improvements or some other solutions to help manage the change, rather than simply taking on more of the work," he advised. "That type of critical thinking will help position you for success."
The Future of Management and Work
The role of a manager is evolving from a direct overseer to a "portfolio operator," according to Rezvani. In this new model, leaders will guide more sprawling, independent teams, with intensive one-on-one coaching becoming a rarity. "What will help the best managers stand out is that they’ll shift from being overloaded, heroic doers to culture designers who push for something more sustainable," she said.
The business case for supporting managers and, by extension, all employees, is compelling. Research shows a strong link between employee well-being and company performance.
Workforce Well-Being and Growth
An analysis of Fortune 500 companies during the 2021 Great Resignation found that companies with established mentoring programs grew their workforce by a median of 3%. In contrast, companies without such programs saw their workforce shrink by 33%.
Jessica Weiss emphasized that employee happiness is no longer a secondary benefit. "More than 80% of people would rather have good mental health than a high salary," she said. "Companies that can create joy, connection, and support across all life stages, even with fewer managers, will win. Those that don't will watch their best people leave for places that actually care about human happiness at work.”