The Silent Crisis: Middle Managers Are Getting Fired Across the U.S.

In today’s fast-changing corporate world, one thing has become quite evident: middle managers are losing their jobs at a rate never seen before. These professionals, often considered the backbone of organizations, are finding themselves squeezed out as companies adapt to new economic realities and technological advancements. But why is this happening, and what does it mean for the future of work? Let’s take a closer look.

The Numbers Don’t Lie

The scale of this phenomenon is simply enormous. In 2023, middle managers accounted for 30% of all layoffs, up significantly from 20% in 2018. These are the people who manage teams, oversee operations, and generally ensure that strategic decisions made in the C-suite get executed. And yet, they’re now apparently dispensable in the quest for efficiency and cost-cutting.

Why Are Middle Managers Getting Fired?

The laying off of middle managers is not an isolated trend but rather a culmination of several interrelated factors. Companies are reconsidering their structures, priorities, and costs in light of economic pressures, technological change, and changing workplace dynamics. Here’s a more detailed look at why middle managers are increasingly being let go:

1. Flattening Organizational Structures

Traditionally, organizations had hierarchical structures with a number of layers of management. In recent years, there has been a move toward flatter organizational designs. Here’s why:

Simplified Decision-Making:
Fewer layers mean decisions can be made faster, with less bureaucracy and red tape. Companies say such agility is crucial in competitive markets.

Empowered Teams:
Many organizations are moving to team-based approaches where individuals or small groups self-manage, reducing the need for supervisors.

Cost Efficiency:
In so doing, companies cut down not only on the costs of salaries but also the overheads in managing different managerial positions.

While that sounds efficient, it almost always overlooks the middle management layer as a very crucial buffer between leadership and employees and leads to potential communication gaps.

2. Cost-Cutting Measures

Economic uncertainty, increasing operational costs, and reduced profit margins have compelled businesses to take some bitter decisions. Middle management positions, usually commanding higher salaries and benefits packages, are a prime target for cost reduction.

Layoffs as Quick Fixes:
Removing managerial roles is often seen as a fast way to achieve significant savings without cutting core operations or front-line workers.

Focus on the Bottom Line:
This is especially true for public companies, which have to deal with the never-ending pressure of shareholders for better quarterly earnings, which usually results in decisions that are not good in the long run.

3. Increase in Technology and Automation

The adoption of AI, machine learning, and advanced analytics tools has fundamentally changed how organizations operate. Middle management, tasked with overseeing processes, tracking performance, and ensuring productivity, is being replaced—or at least supplemented—by technology.

AI Tools in Project Management:
With platforms like Asana, Monday.com, and Trello, teams can manage projects themselves, reducing the need for anyone to oversee day-to-day tasks.

Performance Tracking Systems:
Automated systems provide real-time insights into employee performance, enabling upper management to bypass middle managers for monitoring and evaluation.

Decision-Making Algorithms:
Tools powered by AI can analyze vast amounts of data to assist in decisions, further reducing reliance on human intermediaries.

While these tools improve efficiency, they fail to replicate the nuanced decision-making, mentorship, and relationship-building middle managers bring to the table.

4. The Remote Work Revolution

The shift to remote and hybrid work models has upended traditional office hierarchies. Middle managers, once central to coordinating in-office teams, have seen their roles diminished in the new digital-first environment.

Self-Managed Teams:
In remote work, employees are often left to their own devices in getting work done, rather than relying on close supervision to get the job done.

Direct Access to Leadership:
With Zoom and Slack, it is now much easier for employees to speak directly to senior leadership, thereby eliminating the need for a middle manager to act as a liaison.

Feeling Redundant:
In remote setups, some organizations have come to view middle management as an extra layer that adds little value, leading to reductions.

5. Strategic Restructuring

Companies undergoing mergers, acquisitions, or strategic pivots often find themselves with overlapping managerial roles. To streamline operations and avoid redundancy, middle managers are frequently among the first to go.

Mergers and Consolidations:
When two companies combine, there’s often a duplication of roles. Middle management is typically targeted for downsizing as executive teams seek to integrate operations.

Focus on Core Operations:
Companies shifting focus to new products, services, or markets often restructure their teams to align with strategic goals, sidelining managers whose expertise may not directly apply.

6. Shifts in Workplace Culture

The corporate culture is changing, too, to include more teamwork, flexibility, and innovation. The traditional role of middle management in supervision and policy enforcement has been considered by some to be in conflict with these newer priorities.

Autonomy Over Supervision:
Employees, especially younger ones, are placing a greater emphasis on autonomy and flexibility. This can often run counter to the traditional role of middle managers, which emphasizes supervision.

Innovation Over Maintenance:
Companies are protecting jobs that represent innovation-data scientists or product managers-but cutting those seen as preserving the status quo.

The Double-Edged Sword

As much as these factors may explain the rationale behind the layoffs of middle managers, they also represent potential blind spots. Removing middle managers can create a host of unintended outcomes, including:

A lack of mentorship for junior employees.

Poor execution of strategic initiatives because of missing links in communication.
Dissatisfaction and burnout among employees for lack of support.

Middle managers may no longer fit neatly into traditional corporate molds, but their unique contributions-emotional intelligence, institutional knowledge, and team leadership-remain invaluable. Companies must adapt by reimagining the middle manager’s role rather than by getting rid of them altogether.

The Human Impact

For middle managers, these layoffs are more than just a career setback—they’re deeply personal. Many have spent years climbing the corporate ladder, only to find themselves unexpectedly displaced. Here’s how it’s affecting them:

Financial Strain
Losing a well-paying managerial job can create significant financial pressure, especially for those supporting families or paying off mortgages.

Emotional Toll
For many, it was a lot more than a job. It was their identity-an indication of who they are professionally. When that’s gone, one may feel incapable of something and a loss of one’s purpose.

Limited Opportunities
With fewer middle management roles available, the likelihood of finding a similar role elsewhere will continue to diminish. Consequently, this makes many feel compelled to change their occupations altogether.

The Larger Consequence: What Does That Mean for Organizations?

While layoffs may save money in the short term, eliminating middle managers isn’t without its risks:

Loss of Institutional Knowledge
Middle managers are often the bridge between upper management and front-line employees. They deeply understand company processes, team dynamics, and customer needs. Losing them can create knowledge gaps that are hard to fill.

Decreased Employee Morale
Without middle managers, teams would be bereft of guidance and support. They might feel abandoned, which in turn increases turnover ratios and reduces productivity.

Additional Burden on Other Employees
When the middle management level is removed, the workload does not disappear-it just gets reallocated. This leads to burnout and decreased efficiency throughout the organization.

What Can Middle Managers Do?

For those affected by the trend, flexibility is of the essence. Here is how to make it through this uncertain time:

Upskill
Invest in learning new technologies and project management skills as well. This can usher in new opportunities.

Network Strategically
Reconnect with previous professional contacts and explore which industries your skills are highly transferable to.

Become an Entrepreneur
Some middle managers are using their insight to start their own practices or consult.

Explore Other Industries
The growth in industries such as technology, healthcare, and renewable energy may provide opportunities for experienced managers.

Final Thoughts

The layoffs of middle managers are a radical shift in the corporate world. While companies would argue that such changes are imperative for their survival and growth, there is little denial that one should not feel the human and organizational costs. For middle managers, it is now a time to adapt and reimagine their careers. For organizations, it’s an opportunity to think anew about how they balance efficiency with the need for leadership and support.

What’s your take on this trend? Have you or someone you know been affected? Share your thoughts below—let’s start a conversation about the future of work.