Senior leaders risk losing a “vital link” with employees when they cut off middle managers, a new report has warned, amid ongoing organisational shifts to leaner workforces.
Firstup’s latest research warned that reductions in middle management layers create communication gaps and put at risk employee experience and productivity.
“As companies adopt leaner organisational models and reduce middle management layers, they risk losing the vital link between leadership and the rest of the workforce, jeopardising communication, trust, and employee engagement–all of which are necessary to deliver and sustain high performance,” said Bill Schuh, CEO of Firstup, in a statement.
The warning comes after Firstup’s findings showed that employees strongly rely on their managers for information, clarity, and support.
According to the report, 52% of employees consider their direct manager as their most trusted source for company updates.
More than half of them also turn to their manager first for work-related questions (53%), and for the implications of company updates to their individual roles (86%).
Over half of employees also rely on their manager for support in navigating work challenges (63%), and for career coaching and feedback (72%), the report added.
“Managers are critical for relaying information, as well as translating organisational priorities into action, clarity, and connection for their direct reports,” Schuh said.
Middle manager numbers shrinking
The problem is: these middle managers are starting to get phased out in workplaces.
The 2025 Korn Ferry Workforce survey revealed that 41% of employees belong to firms that cut management layers.
“When companies need to cut labour costs, middle managers are often the first in line for layoffs,” the report read.
Google recently was reported to have cut 35% of managerial positions that handle small teams.
The impact of such cuts can lead to confusion and dissatisfaction, Korn Ferry’s report similarly warned.
“Why does this happen? When managers leave, senior executives are left to pick up the slack—on top of their heavy strategic workload,” it said.
“Instead of fully focusing on crucial business decisions and growth plans, now they also have responsibility for the day-to-day issues their managers handled, only with less time to deal with everything.”
Impact on retention
Losing middle managers will also have an impact on retention.
Previous research has highlighted that unsupported employees will leave their organisations. Not having enough promotion paths will also make top talent seek opportunities elsewhere, the Korn Ferry report warned.
It noted that while these cuts may deliver short-term gains, they can cause long-term problems without appropriate guardrails.
“When management disappears, so does direction. A leaner organisation today can mean a leadership crisis tomorrow,” said Lesley Uren, Chief Executive Officer, Korn Ferry Consulting, in a statement.