Corporate America is streamlining its management structure in an effort to apparently boost efficiency, leading workers across all levels to rethink plans for the future of their careers, according to The Wall Street Journal.
According to a new analysis by employment data firm Live Data Technologies, U.S. public companies have reduced their middle management ranks by about 6% since the height of pandemic hiring. Senior leadership positions have also dropped by nearly 5% since 2021.
As companies cut back on management layers, those who remain in leadership roles are facing heavier workloads.
In fact, research from Gartner shows that managers are now overseeing three times as many employees as they did in 2017.
This has left many seasoned managers and junior workers struggling with fewer opportunities for career advancement, especially as AI continues to reshape the workforce.
Major companies like United Parcel Service and Citigroup have laid off thousands of supervisors in the past year, while Amazon CEO Andy Jassy is working to increase the ratio of workers to managers.
Earlier this month, Google CEO Sundar Pichai announced that the company had cut 10% of its managerial roles as part of its cost-cutting measures.
With fewer management positions available and more pressure on those who remain, many employees are reassessing their career paths.
