So, sit back and relax. You know that reassuring figure, a little gray but necessary, that we used to call 'intermediate manager'? Well, AI is seriously thinking of sending it into early retirement, or worse. Big companies, from Microsoft a Meta, including those who deliver your packages or sell you shampoo, are cutting left and right. They call it 'The Great Flattening'. It sounds like a title from a geological catastrophe, but it applies to the labor market. In practice, away with intermediate levels, down with costs, more agility. Or at least that's what they tell you. Because, let's face it, Cutting well-earning managers is always a good excuse to make ends meetWe talked about it just last week.
AI, in all of this, plays the role of the technological villain, the one that 'manages coordination tasks', 'increases autonomy' and, listen up, 'helps decide on promotions, raises and layoffs'. Yes, you understood correctly. Your destiny, or that of your colleague, could pass through an algorithm. Not bad, huh? Too bad that, in redesigning the labor market, they forget one detail: those 'gray' figures perhaps also acted as bridges, mentors, 'human sensors'.
The Great Flattening and the Changing Job Market
Let's be clear: this trend wasn't born yesterday. Companies have always tried to streamline internal bureaucracy, that plethora of useless meetings and intermediate steps that slow everything down. But now, thanks to AI (and let's face it, also thanks to the perfect excuse to reduce costs by disguising it as modernization), This trend has put the accelerator on the accelerator in an almost brutal way. What began in the aseptic rooms of Silicon Valley (think of Microsoft that has shed employees to “flatten management levels” and “increase agility,” or Meta which explicitly targeted the middle layers to “make decisions faster and deploy AI tools”), spread like a tidal wave.
Not just tech: when even packages fly away
Oh no, don't think it's just a problem for those in sweatshirts and smart glasses. The "Great Flattening" has reached sectors that seemed immune. Remember the brown vans? Well, UPS eliminated as many as 12.000 managerial positions. Even the banks, strongholds of the hierarchy, have cut: Citi has significantly reduced its levels. And we could go on: Amazon, Bayer, even the supermarket giant Walmart is investing heavily in AI and robotics while, almost by accident, laying off employees and aiming for massive automation of stores. In short, the the job market is being churned at a dizzying pace, and the seats under middle managers are becoming increasingly shaky.
The algorithm in a suit and tie
But what role does artificial intelligence play in all this? Well, AI is the perfect justification. Companies are betting (or saying they are betting) that these tools can take on a lot of tasks that previously required a boss: coordinating, communicating, maybe even acting as the “glue” that held teams together. The idea is that the individual worker becomes more “autonomous,” less in need of constant supervision. And here comes the best part (or the worst part, depending on your point of view): The managers who remain, the ones who haven't been flattened away, are starting to use AI for crucial decisions. Decisions on raises, promotions and yes, even layoffs. It says so a new study by Resume Builder. The idea that an algorithm can decide your professional future is at the very least… disturbing. And, let's face it, Many experts warn that AI-driven HR decisions could lead to a wave of discrimination lawsuits. After all, algorithms are only as good as the data we train them with, and data, as you well know, is not always unbiased.
The burden on the labor market and on survivors
The consequences, my friends, are anything but virtual. For those who are cut off, getting back into the the job market at similar levels of seniority or salary is a tall order. The data confirms this: there is a notable decline in middle management positions compared to previous years. And for those who are left? Well, the irony is that they often find themselves supervising huge teams, with workloads and pressures that lead to burnout. A recent study by Taste showed that managers today supervise about twice as many employees as they did five years ago. Think about it: more people to manage, less time (and perhaps less desire) to do the human work of mentorship that is crucial for the youngest in the company.
And what is lost in the meantime?
As companies chase efficiency at all costs, perhaps they forget about that one thing that AI, no matter how sophisticated, cannot replicate. That human ability to make sense of things (sense-making), to understand the subtle dynamics of a team, to coach, to motivate in a genuine way. Sure, algorithms can optimize processes and make predictions based on data. But a pat on the back at the right time, a word of encouragement, the ability to mediate a conflict with emotional intelligence… well, those things still need a human. And as I wrote to you in this article on Near future, there are human skills that remain fundamental in the job market, even (and perhaps especially) in the era of AI. The risk, in this hasty flattening, is that the efficiency gained will be paid for with a loss of that human connective tissue that holds an organization together and, ultimately, makes it a place where people (not just algorithms) want to work well.
So, as machines become better and better at “managing,” and hierarchies become thinner, perhaps it is time to ask ourselves what “managing” really means in the the job market of today and tomorrow. Is it just a matter of processes and numbers? Or is there still room (and need) for that somewhat gray, somewhat tired, but human figure, who knew how to listen, advise, and yes, sometimes just say: “Don't worry, we can do it”? Because AI will be efficient, that's for sure. But I don't think it will offer you a coffee when you're down.
