By Guardian staff reporter
Publication Date: 2026-05-15 11:34:00
As tech companies invest billions in bets on artificial intelligence and cut their workforces, middle managers are in the crosshairs.
A trend is emerging: When tech CEOs proclaim that AI will make it possible to do more with fewer workers, they are promising to flatten their structures by eliminating what they describe as unnecessary layers of management and bureaucracy. Just last week, cryptocurrency exchange Coinbase laid off 14% of its workforce while touting the appeal of AI-powered, minimal administrative efficiencies. It joined companies like Amazon, Block and Meta, which laid off tens of thousands of employees last year, with a particular focus on cutting management levels.
The push to shrink the executive ranks is becoming increasingly important, particularly among companies that are rapidly adopting AI, said Anastassia Fedyk, an assistant professor at the Haas School of Business at the University of California, Berkeley. She has studied how AI is changing the composition of the workforce. As…
