It’s easy to see the appeal of leaner organizations: faster decisions, more time for innovation and core business activities instead of being bogged down with reporting, scheduling and other management tasks – and, of course, attractive cost savings. According to a Morgan Stanley analyst, Amazon’s plan could cut about 14,000 managerial positions and save up to $3.6 billion.

But it is essential to examine the potential trade-offs.

COMPENSATIONS OF A HIGHER PAY HIERARCHY

The latest moves are giving middle managers a bad rap. They are easily accused of having little expertise, unlike individual contributors, or having little say in organizational change, unlike senior executives.

In today’s evolving work environment, managers play a crucial role in providing mentorship, encouraging collaboration, and driving employee engagement—if they have the right resources to do so, and what consulting studies suggest they don’t.

The shift to flatter organizational structures could significantly hinder these efforts, as fewer managers may have less time and capacity to effectively support their teams. Managers who supervise multiple team members may experience increased workload and burnout as they take on a wider range of responsibilities. This could also lead to a decrease in employee satisfaction, especially for those who value mentoring and career guidance as a core aspect of their work experience.