Great Lakes Wire

The trend known as "The Great Flattening," which involves reducing the number of middle managers to lower costs and streamline operations, is expanding beyond its tech sector origins. Companies in retail, finance, and government are now adopting similar approaches.

Major technology firms including Amazon, Microsoft, and Google started these changes last year. More recently, retailers such as Walmart, Wayfair, and Starbucks have followed suit. Financial organizations like HSBC and Ernst & Young are also participating in this shift. In addition, the Department of Government Efficiency has implemented flattening strategies to increase productivity in federal agencies.

Recent data shows the scale of this movement. Job-tracker Live Data Technologies reports that middle managers made up 29% of all layoffs in 2024—a significant jump from an average of 20% between 2018 and 2022. Revelio Labs notes that job postings for middle-management roles have dropped by more than 40% since 2022. Many organizations are not only letting go of current middle managers but also opting not to fill those positions when they become vacant.

Supporters argue that removing layers of management can cut expenses and make companies more responsive by reducing bureaucracy. This could create opportunities for employees to take on new responsibilities.

However, there are concerns about the loss of leadership and support that middle managers provide. Brad Smith, Chief Science Officer at meQuilibrium (meQ), stated: “Beyond the direct negative impact to middle managers who have to compete for a new job in an already challenged labor market, the greatest suffering will be among individual contributors on teams where middle managers have been made obsolete. Execution of corporate strategy is also likely to suffer. Middle managers have historically been the filterers and translators into action of senior executives’ business-speak.”

Research from meQ’s State of the Workforce studies over five years shows a strong connection between employee well-being and supportive management. Without this layer of leadership, organizations may see increased burnout, higher turnover rates, and weaker workplace culture.

While cost savings are immediate with The Great Flattening, experts warn that the broader effects on workforce performance may be substantial over time.

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