Signs of a transformation are emerging within corporate America, as nearly 41% of employees reported that their companies reduced management layers in the past year, according to a Korn Ferry survey of 15,000 professionals worldwide. This trend, referred to as "the Great Flattening," is largely linked to the growing use of AI agents, which are taking over many functions traditionally managed by middle management. Tasks such as workflow orchestration, task coordination, reporting, and information sharing are increasingly handled by AI systems, leading organizations to reconsider the need for multiple management tiers.
Restructuring efforts by major firms—including Meta, Citigroup, CrowdStrike, and GitLab—have sparked discussions about whether AI will drive a broader move toward flatter organizational structures. Matthew Prince, CEO of Cloudflare, illustrated this sentiment when he described the layoffs of about 20% of his workforce, many of whom he labeled as "measurers." These roles included positions in middle management, finance, legal, internal auditing, and revenue recognition. Prince noted that the company retained its "builders," such as engineers, challenging the common belief that software engineers are among those most at risk from AI advancements.
As AI technologies like Anthropic’s Claude Code continue to advance, their capacity to perform coding tasks raises concerns about the future of technical roles within an AI-enabled workforce. Prince clarified that the layoffs were not merely about reducing headcount but about redefining work in a rapidly changing environment. Despite these cuts, he pointed out a record number of open positions aimed at fostering growth.
Bret Greenstein, chief AI officer at consulting firm West Monroe, offered further insight into the evolving role of management in an AI-centric world. He suggested that management will increasingly be accountable for measurable business outcomes rather than just serving as information conduits. Greenstein remarked, "Thanks to AI at everyone’s fingertips, CEOs know things as fast as anyone in the team. You don’t really need a translator."
The traditional duties of managers—gathering information, relaying updates, scheduling meetings, tracking progress, and ensuring team alignment—are now tasks that AI agents can perform continuously and efficiently. Andy Williamson, CEO of ONLC Training, pointed out that mid-level managers often spend about a third of their week in meetings focused primarily on synchronization tasks. With AI capable of managing these duties, the role of human managers is set for transformation.
However, Max Martina, president of Cambridge Leadership Associates, warned against the assumption that management roles will completely disappear. Instead, he highlighted that AI will enhance managerial responsibilities and decision-making processes. "The activity of management will be supported with new tools, greater efficiency, and an opportunity to move from task-focused execution to leadership behavior," Martina explained. He believes these advancements will create a new realm of genuine leadership rather than mere management.
As companies continue to incorporate AI into their operational frameworks, the implications for corporate hierarchy and management practices are likely to evolve. The potential for a flatter organizational structure, bolstered by AI efficiencies, raises important questions about the future of work and leadership in an increasingly automated environment.
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