Middle Management Roles Declining Due to AI and Restructuring

Middle management positions have seen a substantial increase in layoffs, accounting for nearly a third of all job cuts in 2023, a notable rise from approximately 20% five years prior. This trend is projected to continue, with Gartner predicting that by 2026, 20% of organizations will leverage artificial intelligence to streamline their operational hierarchies, consequently eliminating over half of their existing middle management roles. Evidence supporting this forecast is emerging, as The Wall Street Journal reported a 6.1% decrease in manager head count between May 2022 and May 2025. Complementing these findings, Korn Ferry's Workforce 2025 survey indicated that 41% of employees observed their organizations reducing management layers. While periods of workforce reduction are not new to the corporate landscape, the current wave of layoffs exhibits distinct characteristics. Gallup data reveals a significant increase in the average number of direct reports per manager, rising from 10.9 in 2024 to 12.1 in 2025. This represents an almost 50% surge in span of control since 2013. The implication of this data is that departing managers are not being replaced; instead, their responsibilities and teams are being absorbed by existing managers, thereby expanding their oversight. This shift signifies not merely a reduction in job numbers but a fundamental erosion of the middle management role itself. In the past year, there has been an argument for reimagining the function of middle managers rather than outright elimination. While some companies are exploring this avenue, the majority are not. For individuals in the middle of their careers, possessing substantial experience but with many working years ahead, passively waiting to see the impact on their positions is not a viable strategy. Proactive adaptation and strategic career planning are becoming essential in this evolving professional environment. The increasing adoption of AI in organizational structures is a primary driver behind this transformation, enabling companies to automate tasks previously handled by middle managers and to operate with leaner, flatter hierarchies. This technological integration, coupled with strategic restructuring efforts, is fundamentally reshaping the demand for traditional management roles, pushing professionals to reassess their career trajectories and skill sets to remain relevant in the modern workforce.