"Middle managers made up one-third of all layoffs in 2023. Today, 41% of employees work at companies that cut management layers. The coordination work didn't just disappear. Some of it moved to senior leaders who were already underwater. Some of it stopped happening entirely."
"Cut it and development stops. The formal programs with external facilitators keep running, sure. But the practical learning - where someone makes a bad decision and their manager walks them through why it failed? That's gone."
"One tech company cut 70% of its engineering managers in 2024. It saved $3.2 million. The VP of Engineering now has 47 direct reports. He approves decisions in Slack between meetings - no context, no coaching."
"Only 6% of Gen Z wants senior leadership roles, according to Deloitte's research. They watched middle managers get eliminated for efficiency. They learned that building toward management means building toward instability."
Gartner predicts that by the end of the year, one in five companies will cut over half their middle managers. This trend aims to enhance efficiency and reduce costs, but it undermines leadership development. Middle managers accounted for a significant portion of layoffs in 2023, and their absence has shifted coordination responsibilities to already overwhelmed senior leaders. The loss of coaching and practical learning opportunities hampers the growth of high-potential employees. Companies are mistakenly assuming they can replace middle management with external hires, but interest in senior leadership roles is declining among younger generations.
#middle-management #leadership-development #employee-coaching #organizational-structure #gen-z-workforce
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