Tech Firms Slash Middle Management

a { color: #880000 !important; background: #ffeeee !important; } Latest News from NourishThe Nourish Mission (formerly OneSub)Get answers to today's big questionsTech Firms Slash Middle Managementcareers > businessAs of late July 2025, major US tech companies including Microsoft, Google, Amazon, and Intel are aggressively cutting middle management roles to reduce costs and streamline operations, a trend dubbed the "Great Flattening." This has led to layoffs, especially among mid-career managers, who often face lateral moves or pay cuts. Meanwhile, job seekers are advised to act quickly and network effectively to navigate the evolving job market.

What's happened

As of late July 2025, major US tech companies including Microsoft, Google, Amazon, and Intel are aggressively cutting middle management roles to reduce costs and streamline operations, a trend dubbed the "Great Flattening." This has led to layoffs, especially among mid-career managers, who often face lateral moves or pay cuts. Meanwhile, job seekers are advised to act quickly and network effectively to navigate the evolving job market.

What's behind the headline?

The Great Flattening: A Structural Shift in Corporate America

The wave of middle management layoffs across major tech firms signals a fundamental shift in how companies organize and operate. This "Great Flattening" is driven by a desire to cut costs and accelerate decision-making by reducing layers of management. However, this approach has complex implications:

Impact on Mid-Career Managers: Millennials and Gen X managers, who traditionally hold these roles, face job insecurity and often must accept lateral or lower-paying positions. This disrupts career trajectories and may dampen morale.
Increased Span of Control: Remaining managers are burdened with more direct reports, increasing workload and potentially reducing managerial effectiveness and employee support.
Efficiency vs. Human Element: While executives like Meta's Mark Zuckerberg argue that flatter structures are "faster," the loss of middle managers risks weakening mentorship, performance recognition, and employee development.
Job Market Dynamics: Job seekers must adapt by moving quickly, customizing applications, and leveraging networks to stand out in a competitive market increasingly influenced by AI tools.
Broader Economic Context: Intel's cuts and project cancellations reflect a cautious investment stance amid uncertain chip demand and AI competition, underscoring the wider economic pressures prompting these organizational changes.

This trend will likely continue as companies balance cost pressures with the need to remain agile. However, the human cost and potential impacts on workplace culture and employee growth warrant close attention.

What the papers say

Business Insider UK provides detailed accounts of the "Great Flattening," highlighting layoffs at Microsoft, Amazon, and Google, with insights from affected managers like Daniel Radmanovic and Melekian. Madison Hoff reports on the challenges faced by mid-career managers, noting a 400% rise in layoffs among 35- to 44-year-olds and the doubling of direct reports per manager. The South China Morning Post and AP News focus on Intel's significant workforce reductions and strategic shifts under CEO Lip-Bu Tan, including project cancellations in Europe and slowed factory construction in Ohio. TechCrunch elaborates on Intel's operational streamlining and CEO Tan's emphasis on disciplined investment. Meanwhile, Business Insider UK articles advise job seekers on navigating the evolving market, emphasizing speed and networking, and cautioning against overreliance on AI-generated resumes, as detailed in their July 26 coverage. These sources collectively illustrate a corporate landscape undergoing rapid restructuring amid economic and technological pressures.

How we got here

Since early 2022, many large corporations have sought to reduce bureaucracy and improve efficiency by flattening organizational structures. This has accelerated in 2025 amid economic uncertainty and AI-driven shifts, leading to widespread layoffs of middle managers, particularly affecting Millennials and Gen X in the US tech sector.

Go deeper

How are middle managers coping with increased workloads after layoffs?
What strategies can job seekers use to stand out in this competitive market?
How is AI impacting hiring and job application processes?

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