Charles Esther
What began as a cost-cutting measure in Big Tech is now sweeping across industries.
Companies such as Walmart, Wayfair, and Block are reducing or restructuring middle management positions in a trend that’s becoming known as “The Great Flattening.”
Earlier this year, tech giants like Google, Amazon, and Intel announced mass layoffs, primarily targeting midlevel roles.
Now, Walmart has joined the ranks, announcing it would eliminate 1,500 jobs in an effort to “remove layers and complexity.”
Many of these positions were held by corporate middle managers.
Economic Pressure Behind the Cuts
Recession concerns and the unpredictability of new federal tariffs are prompting businesses to get leaner.
With rising operational costs, companies are seeking ways to save money while improving efficiency.
Walmart, for instance, has started raising prices to offset the impact of tariffs proposed under President Donald Trump.
At the same time, cutting higher-paid midlevel employees has become another method for trimming the budget.
Government agencies are following suit.
Elon Musk and the White House’s DOGE office are leading efforts to reduce public-sector staff, contributing to the flattening wave in the federal workforce.
A Shift in Management Philosophy
This flattening trend isn’t just about money — it’s rooted in a changing management philosophy.
Meta CEO Mark Zuckerberg famously stated in 2023, “Flatter is faster.”
He criticized traditional hierarchies with multiple layers of managers supervising other managers.
Amazon’s Andy Jassy echoed this in 2024, saying fewer managers could streamline decision-making and speed up operations.
Daniel Zhao, lead economist at Glassdoor, explained that the current wave of cuts stems from how companies expanded their workforce during the pandemic.
With rapid headcount growth, firms needed more managers to train and oversee new employees.
Promotions were handed out during labour shortages, creating a bloated management structure.
Now that hiring has slowed, those roles have become expendable.
The Middle Manager Squeeze
The pressure on middle managers is mounting.
Glassdoor data shows that fewer than half of midlevel employees felt confident about their employers as of April 2025.
This is the lowest rating since the platform began tracking employee confidence in 2016.
Those who have been laid off often find themselves forced into lower-paying or lower-ranking jobs just to re-enter the workforce.
Others, still employed, are managing more direct reports than ever, adding to burnout and dissatisfaction.
Gallup also reported that employee engagement hit a decade low last year — another sign of the growing discontent.
The Ripple Effect on Career Ladders
The flattening trend is not limited to managers.
It’s starting to reshape career trajectories across industries.
Laid-off managers are now competing with entry-level workers and recent graduates for the same roles.
This “bunching down” effect could hinder upward mobility and limit career opportunities for younger professionals.
Zhao warns that if this continues, the traditional path of career advancement — from junior to senior roles — could be disrupted entirely.
Despite Cuts, the Labour Market Remains Resilient
While “The Great Flattening” is expanding, it’s important to note that overall layoff rates remain relatively low.
The job market, on paper, is still strong.
However, the restructuring of management roles signals a new era of workplace organization.
Fewer rungs on the corporate ladder may mean faster communication and less bureaucracy — but they also bring uncertainty for midcareer workers.
Conclusion
2025’s “Great Flattening” is redefining the corporate structure, eliminating middle managers, and reshaping how companies operate.
What started in Big Tech has now spread to retail, fintech, and even government.
With cost pressures rising and efficiency becoming the mantra, the future of middle management hangs in the balance.
For now, companies seem committed to this flatter, leaner approach — and the ripple effects are only just beginning.
