When AI Cuts Middle Management, What Do Companies Lose?
Summary
Many companies are using artificial intelligence (AI) to replace middle managers who used to handle data, communicate between teams, and track work progress. Experts say that while AI can improve efficiency, the loss of middle managers may hurt employee communication, trust, and overall workplace health.Key Facts
- Middle managers traditionally handle data collection, communication between senior leaders and teams, and tracking task progress.
- Amazon laid off 14,000 middle managers last year as part of workforce changes.
- AI can perform some middle management tasks faster and cheaper than humans.
- Psychologist Dr. Shannon Franklin says middle managers also help employees understand changes, address problems early, and build teamwork, which AI cannot do.
- Removing middle managers can lead to less employee communication and reduced trust at work.
- Companies might gain some efficiency but risk lowering employee engagement and resilience to challenges.
- A McKinsey report showed the demand for AI-related skills grew quickly between 2023 and 2025.
- Experts believe middle managers will not disappear but will need to combine managing people, work, and AI technology in the future.
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