Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
The role of manager is changing across U.S. workplaces.
Large employers are reducing layers of middle management and increasing the number of employees reporting to each remaining supervisor, according to a new Gallup study. Tech companies have moved fastest, with firms like Amazon publicly cutting management roles to lower costs and speed decisions.
Recent layoff data shows middle managers have been disproportionately affected, accelerating what analysts describe as a broad flattening of corporate structures.
This is increasing average team sizes and redefining what effective management looks like.
Average Team Sizes Are Rising, Even as Most Teams Stay Small
National data shows managers are overseeing more people than in previous years.
The Bureau of Labor Statistics estimates there is one manager for every 11.5 employees. Gallup data shows the average span of control increased from 10.9 employees in 2024 to 12.1 in 2025. That change is driven by growth in very large teams, particularly teams with 25 or more direct reports.
Most managers still lead relatively small groups. The median team size remains five to six employees. About two-thirds of managers oversee fewer than 10 people, while only 13% manage teams of 25 or more. A smaller number of oversized teams is pushing the overall average higher.
Engagement Determines Whether Larger Teams Work
Research shows team size alone does not predict performance.
Gallup analyzed more than 92,000 teams across industries and regions. For small and mid-sized teams, higher engagement consistently correlated with higher productivity, better wellbeing, and lower turnover. For teams of 20 or more, results varied by industry and job type.
In some sectors, highly engaged large teams outperformed less engaged ones. In others, engagement had an inconsistent relationship with productivity and retention. The findings suggest that large teams require specific conditions to function effectively.
Managers Are Still Doing Individual Contributor Work
Most managers continue to split their time between leading and hands-on tasks.
97% of managers perform individual contributor work in addition to managing people. The median manager spends about 40% of their time on non-managerial duties. Managers who exceed that level are more likely to lead smaller teams.
As team size increases, managers with heavy individual workloads report lower engagement. This pattern appears regardless of industry. At the same time, managers report higher stress, burnout, and job-seeking behavior than in prior years.
Management Talent Shapes Outcomes More Than Headcount
Not all managers respond to larger teams in the same way.
Gallup research identifies five traits associated with strong management performance, including motivation, collaboration, and analytical thinking. Managers with high levels of these traits maintain higher engagement even as team size and workload increase. Managers with lower levels see engagement decline as responsibilities expand.
Work arrangement also affects outcomes. Increasing team size has a smaller impact on on-site managers than on remote or hybrid managers, who reach capacity limits sooner.
Weekly Feedback Remains the Strongest Engagement Driver
Regular manager feedback consistently predicts employee engagement.
Across multiple studies covering more than 44,000 employees, Gallup found that workers who received meaningful feedback in the prior week reported high engagement regardless of team size. When feedback was absent, engagement fell sharply.
Employees define meaningful feedback as recognition, clarity on priorities, discussion of strengths, and collaboration. Short, consistent conversations were sufficient to produce results.
Flattening Structures Changes the Job, Not Just the Chart
Expanding spans of control is becoming more common, but it is not a standalone strategy.
Research shows larger teams can function effectively when managers have the right talent, manageable workloads, and clear expectations around feedback. Without those conditions, expanding team size increases risk to engagement and performance.
As organizations continue to reduce management layers, the manager role is shifting from direct oversight to influence, prioritization, and communication. The success of flatter structures depends less on how many people report to a manager and more on how that manager’s role is designed and supported.
