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Middle manager cuts rise amid efficiency push risking further disengagement and attrition

As corporations prioritize efficiency in the face of economic headwinds, middle managers are bearing the brunt of layoffs. According to an analysis by Live Data Technologies, middle managers – defined as non-executives who oversee employees – accounted for nearly a third of layoffs last year, up from 20% in 2018. Major companies like UPS, Citigroup, and Meta have all announced significant cuts to their management ranks in a bid to streamline operations and reduce costs.


The trend towards leaner organizations is not new, with the concept of "lean and mean" popularized by General Electric's CEO Jack Welch in the 1980s. However, the current focus on efficiency appears to be more directly targeting middle managers due to their higher salaries and perceived lack of direct contribution to projects. This sentiment has been echoed by prominent tech leaders like Mark Zuckerberg and Elon Musk, who have criticized top-heavy organizational structures.


While cutting middle management may seem like an attractive way to boost efficiency, it can also lead to unintended consequences. The loss of middle managers can result in increased uncertainty and decreased morale among remaining employees, who may feel less supported and valued without the personalized attention and guidance provided by their managers. Moreover, proving the value of middle managers has long been a challenge, as their contributions often involve intangible tasks like coaching and consensus-building, which are more difficult to quantify than direct outputs like lines of code or customer retention.

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