Tech

It's a tough time to be a manager in tech

Illustration of a boss firing an employee who holds a box of their things while slouching toward the door that has an "Exit" sign above it.
Middle managers may have the toughest job in tech right now. Prasong Maulae/ Getty Images
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Managers may just have the toughest job in tech right now.

In the latest blow to middle managers, Amazon announced it planned to reduce the number of supervisors within its organization.

CEO Andy Jassy said in a message to employees posted to Amazon News that the company plans to flatten departments and ask senior leadership teams to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025.

Jassy said the move was part of an effort to get the company operating "like the world's largest startup," allowing employees to "move fast" and not waste time with "unnecessary processes."

A copy of an internal document obtained by Business Insider indicates the new plan could result in role eliminations as "organizations may identify roles that are no longer required."

It's the latest hit to tech's wearied middle managers amid a rough few years.

Many have found themselves in the firing line of sweeping layoffs as Big Tech companies scramble to cut costs. Those who kept their jobs have complained of being left with more work amid hiring slowdowns.

Lynda Gratton, a professor of management practice at London Business School, told BI that middle managers had steadily been asked to do more post-pandemic.

"Manager overwork and burnout is a real issue," she said. "The pandemic meant that many are also managing complex hybrid teams."

Tech has turned on managers

Amazon is not the first tech company to balk at its own corporate structure.

At Meta, Mark Zuckerberg has been gradually eliminating layers of middle management. The tech boss said he doesn't like seeing "managers managing managers" and has been "flattening" his company ever since. The reorg has seen many Meta supervisors demoted with the aim of having more people on the ground doing things like coding, designing, or selling.

Shopify has also been flattening its structure to have fewer managers. At X, Elon Musk has ordered engineering managers to get back into the coding trenches with their direct reports.

The reduction of middle managers is, in part, a reaction to overhiring during the COVID-19 pandemic and a backlash against so-called "fake work" within the tech sector.

But significantly reducing the number of managers could also backfire on companies.

"Tech firms have worked out that the most productive technologists are well managed, feel secure, are mentored and supported, and feel listened to," Gratton said. "That's one of the reasons why they have invested more in managers — when management is done well — they are the golden thread."

When asked to comment, representatives for Amazon referred BI back to Jassy's online statement.

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Beatrice Nolan was a tech reporter on the business news team in the UK. She joined Insider in January 2022 as a fellow on Business Insider's careers desk. Beatrice covered tech and the future of work, with a focus on artificial intelligence. Some of her stories and early experiments with ChatGPT are widely cited. Beatrice has also discussed her work covering AI trends on panels and radio shows, including NPR.She was based in Business Insider's London office and graduated from the University of  York with a bachelor's degree in English.Featured Articles:Artists say AI image generators are copying their style to make thousands of new images — and it's completely out of their control.ChatGPT was a black swan eventFinland is the world's happiest country, but Finns say we're confusing happiness for something elseThe world is splitting between those who use ChatGPT to get better, smarter, richer — and everyone elseThis man used AI to write and illustrate a children's book in one weekend. He wasn't prepared for the backlash.ChatGPT has only been around for 2 months and is causing untold chaosTwo professors who say they caught students cheating on essays with ChatGPT explain why AI plagiarism can be hard to proveChatGPT wrote college application essays. Admissions professionals said they passed for essays written by students but wouldn't have a chance at any top colleges.College professors are considering creative ways to stop students from using AI to cheatChatGPT wrote my cover letters. Here's how recruiters responded.