Uber Joins 'Great Flattening' Trend with 10% Workforce Reduction, Targeting Middle Management

Uber, the global ride-sharing and delivery giant, has announced a significant workforce reduction of 10%, affecting approximately 3,300 employees. This marks the company's largest job cuts since the onset of the COVID-19 pandemic. CEO Dara Khosrowshahi communicated these changes in a memo to employees, emphasizing that the primary objective is to accelerate decision-making processes and foster greater agility within the organization by reducing the number of management layers. Khosrowshahi specifically highlighted that the proportion of employees situated seven or more organizational layers away from the CEO has been reduced by 20%. Furthermore, the prevalence of "micro-teams," characterized by having only one or two direct reports, has been nearly halved. This strategic restructuring at Uber is presented as a clear continuation of the broader corporate phenomenon known as the 'Great Flattening.' This trend, which has been gaining momentum in recent years, involves the deliberate reduction of middle management layers across various industries. Prominent technology companies, including Meta (formerly Facebook), Amazon, Google (Alphabet), and Microsoft, have previously implemented similar measures. These tech giants have often cited the principle articulated by Meta CEO Mark Zuckerberg: "flatter is faster," suggesting that streamlined hierarchies lead to quicker execution and innovation. The accelerating pace of artificial intelligence development is also identified as a significant catalyst for this widespread reshaping of the corporate workforce, enabling automation and new operational efficiencies. Data from Gallup underscores the impact of this trend, indicating a substantial increase in the average number of direct reports per manager. This figure rose from 10.9 in 2024 to 12.1 in 2025, representing a nearly 50% increase since 2013, signifying a broader shift in management spans. A 2025 survey conducted by Korn Ferry further corroborates this, revealing that 41% of employees reported their organizations had undertaken reductions in management layers. The 'Great Flattening' is effectively creating a large-scale natural experiment, allowing for an assessment of the consequences of slimming down middle management structures. While several companies have publicly touted productivity gains and improved operational efficiency following aggressive flattening initiatives, the overall results are described as mixed. For instance, the life science multinational Bayer has reported that its efforts to trim organizational layers and reduce management positions have led to significantly shortened product development cycles. Bayer also projects these changes to contribute to substantial annual organizational savings, estimated at €2 billion (approximately $2.3 billion). The ongoing adoption of this strategy by more companies raises critical questions about whether an excessive pursuit of flatness could eventually lead to suboptimal management, a concern that remains under active observation within the business community.