Companies are investing billions of dollars in artificial intelligence, but one of the first places the technology is reshaping corporate America is not on factory floors or customer service desks — it is in the middle ranks of management.

A growing body of research shows businesses are eliminating management layers as AI takes over many of the administrative and coordination tasks that traditionally required supervisors. According to Korn Ferry’s 2025 Workforce Survey, which polled 15,000 professionals worldwide, 41% of employees said their organizations reduced management layers during the past year. In the United States, that figure climbed to 44%, making America one of the leading markets for flatter organizational structures.

The shift reflects how AI is changing the role of management itself. Middle managers have historically served as the bridge between executives and frontline employees, coordinating projects, preparing reports, monitoring performance, conducting meetings and communicating strategy throughout an organization. As AI tools increasingly automate scheduling, reporting, workflow management and information sharing, companies are concluding they need fewer people performing those coordination functions.

Some of the world’s largest corporations have already embraced the strategy.

Amazon announced plans to eliminate roughly 14,000 corporate positions, with Chief Executive Andy Jassy telling employees the company intends to become leaner while reducing unnecessary layers of management. Similar restructuring efforts have been announced or implemented by Meta, Google, Intel, Citigroup, Block, and software developer GitLab, all citing efficiency improvements and AI-enabled operations as reasons to simplify organizational structures.

Independent research points to the same trend.

According to workforce analytics firm Live Data Technologies, cited by The Wall Street Journal, the number of managers employed by publicly traded companies declined 6.1% between May 2022 and May 2025. Meanwhile, Gallup reports the average manager’s span of control has expanded significantly. Managers supervised an average of 8.2 employees in 2013, rising to 10.9 in 2024 and 12.1 by 2025 as companies consolidated reporting structures.

Research firm Gartner has projected that AI-driven restructuring could eventually eliminate more than half of today’s traditional middle-management positions as automation continues improving.

For employers, the financial incentives are straightforward.

Reducing organizational layers lowers payroll costs, speeds decision-making and frees capital for investments in technology and highly skilled technical employees. Fewer approvals can also accelerate product development and improve responsiveness in competitive markets where companies increasingly compete on speed.

Yet the savings come with risks.

Korn Ferry found that 37% of employees said losing management layers left them feeling directionless, while 43% believed leadership teams became less aligned after restructuring. Another survey found 72% of executives reported increased stress as responsibilities once handled by middle managers shifted upward to senior leadership.

Lesley Uren, a senior executive at Korn Ferry Consulting, warned that eliminating managers without redesigning leadership responsibilities can weaken organizations over time. While AI can automate administrative work, she noted it cannot replace coaching employees, resolving interpersonal conflicts or building organizational culture.

Those human responsibilities remain critical.

Removing management positions does not eliminate the work managers performed. Instead, companies often redistribute those responsibilities to senior executives already balancing strategic priorities or to frontline employees with limited leadership experience. Gallup research suggests experienced managers can successfully oversee larger teams, but expanding the responsibilities of weaker managers often reduces employee engagement and increases turnover.

The trend also raises questions about future leadership development.

A separate Deloitte survey found only about 6% of Gen Z and millennial workers identify reaching executive leadership as their primary career objective. With fewer management positions available and less interest among younger employees in pursuing traditional leadership paths, companies may eventually struggle to develop experienced executives from within.

Despite the restructuring, management itself is not disappearing.

The U.S. Bureau of Labor Statistics projects employment in management occupations will continue growing faster than the national average through 2034, with median annual earnings exceeding $122,000. Instead, the nature of management is evolving toward responsibilities that AI cannot easily replicate, including judgment, mentoring, strategic decision-making, negotiation and organizational leadership.

For employees, the message is becoming increasingly clear. Career advancement may depend less on accumulating direct reports or climbing organizational layers and more on developing specialized expertise, adaptability and leadership skills that complement artificial intelligence rather than compete with it.

The companies most likely to succeed may ultimately be those that use AI to remove routine administrative work while preserving the human relationships, coaching and decision-making that remain essential to effective leadership.

As corporate America continues embracing artificial intelligence, the future of management appears less about supervising larger bureaucracies and more about leading smaller, faster and increasingly technology-enabled organizations.

JBizNews Desk | New York

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