The unstoppable rise of corporate flattening

[WORLD] Over the past few years, a seismic shift has been reshaping corporate America. Dubbed "The Great Flattening," this movement has seen companies eliminate layers of middle management in favor of leaner, more streamlined hierarchies. While this restructuring promises efficiency and agility, it has left many experienced professionals grappling with a bleak job market and uncertain futures. As businesses continue to embrace this trend, it is becoming increasingly clear that The Great Flattening is not just a passing phase—it’s here to stay.

The Rise of Corporate Flattening

The concept of flattening corporate structures is not new. It dates back to the 1980s when globalization and cost-cutting philosophies began to dominate management strategies. However, the current wave of flattening has reached unprecedented levels. Companies like Meta, Citi, UPS, and Amazon have aggressively reduced their management layers in recent years. For instance, Citi trimmed its 13 layers of management down to eight, while UPS cut 12,000 managerial positions out of its 85,000-strong workforce. Meta CEO Mark Zuckerberg famously criticized excessive bureaucracy as "managers managing managers," setting the tone for this widespread restructuring.

Amazon CEO Andy Jassy echoed similar sentiments when he declared his disdain for bureaucracy, aiming to increase the worker-to-supervisor ratio by at least 15%. Even Elon Musk has championed this approach, not only within his companies but also as a potential model for government reform. The driving force behind these changes is the pursuit of efficiency and speed—qualities that are increasingly valued in today’s fast-paced business environment.

The Fallout for Middle Managers

While flattening may benefit organizations by reducing costs and expediting decision-making processes, it has come at a significant cost to middle managers. According to Revelio Labs, job postings for middle-management roles have plummeted by 43% since their peak in April 2022. Senior leadership positions have fared even worse, with a 57% decline in job openings during the same period. In stark contrast, entry-level roles requiring little to no experience have only seen a modest 14% drop.

This data highlights a grim reality: middle-management jobs are not just being vacated—they are being permanently eliminated. As companies resume hiring for lower-level positions, they show little intention of refilling supervisory roles. This trend has created a double-edged sword for middle managers: an oversaturated job market combined with a shrinking pool of opportunities.

The Human Cost of Flattening

The impact on individuals caught in this wave of layoffs is profound. Many middle managers are seasoned professionals in their late 40s or 50s who have spent decades climbing the corporate ladder. They possess extensive experience and skills that should make them valuable assets to any organization. Yet, they find themselves struggling to secure new roles.

Take Rick, a former middle manager in his mid-50s who epitomizes the plight of those affected by The Great Flattening. After being laid off from his supervisory role, Rick expanded his job search to include entry-level positions—only to be rejected for being overqualified. "Forget the titles," he said. "I just need a job." Rick’s story underscores the paradox at the heart of this trend: experience that should be an advantage has become a liability.

Many displaced managers have resorted to drastic measures to improve their chances in the job market. Some omit their supervisory experience from their resumes or remove graduation dates to avoid age discrimination. Others write heartfelt cover letters explaining their willingness to take on lower-level roles despite their impressive credentials.

Efficiency vs. Effectiveness

The rationale behind flattening is clear: fewer layers mean faster decision-making and lower costs. Studies have shown that businesses with fewer management tiers can deliver products more quickly than their hierarchical counterparts. However, the long-term effectiveness of this approach remains debatable.

Middle managers play a crucial role in organizations. They motivate teams, mentor junior employees, facilitate communication across departments, and ensure smooth operations. As one study noted, when middle managers perform their jobs well, they contribute more to organizational performance than either top executives or entry-level workers.

Yet companies seem willing to sacrifice these benefits in pursuit of short-term gains. The survivors of managerial layoffs are often left overseeing larger teams than ever before, leading to burnout and reduced productivity. Meanwhile, junior employees—many from Gen Z—are deprived of mentors who could guide them through their early careers.

A Strained Workforce

The consequences of flattening are becoming increasingly apparent within organizations that have embraced it wholeheartedly. Departments are siloed due to a lack of coordination between teams—a task traditionally handled by middle managers. Employees at all levels report feeling disengaged and overburdened as they struggle to adapt to these new dynamics.

For example, Gen Z workers entering the workforce often rely on mentorship from experienced supervisors to develop their skills and navigate workplace challenges. Without these mentors, they may feel disconnected and undervalued—a sentiment that could lead to higher turnover rates and lower overall morale.

Is There Hope for Middle Managers?

The future remains uncertain for those displaced by The Great Flattening. Much depends on whether companies view this restructuring as successful in achieving its goals of efficiency and innovation—or if they recognize its unintended consequences.

Some organizations may eventually realize that eliminating middle-management roles places unsustainable pressure on remaining employees while eroding institutional knowledge and cohesion. If so, there could be a gradual return to more balanced hierarchies where experienced supervisors are once again valued for their contributions.

For now, however, The Great Flattening shows no signs of abating. As Zuckerberg noted during Meta’s restructuring efforts: "Having fewer layers creates stronger companies." This sentiment reflects a broader belief among CEOs that leaner organizations are better equipped to compete in today’s rapidly changing marketplace.

Adapting to a New Reality

For professionals affected by The Great Flattening—and those entering industries where it is taking hold—the key lies in adaptability. Developing new skills aligned with emerging trends can help individuals remain competitive despite shifting workplace dynamics.

Organizations also have an opportunity—and arguably an obligation—to support employees during these transitions by offering reskilling programs or alternative career paths within their structures.

The Great Flattening represents both an opportunity and a challenge for modern businesses and workers alike. While it promises greater efficiency through streamlined hierarchies, it risks alienating talented professionals whose experience is dismissed as redundant or overqualified.

As companies navigate this transformative period in corporate history—and as individuals like Rick seek ways forward—it remains essential for all stakeholders involved to balance efficiency with humanity; innovation with inclusion; progress with purpose.