Ask HN: Why so many companies reducing middle management recently? | Hacker News Reader

Ask HN: Why so many companies reducing middle management recently?

I understand why you’d want to reduce middle management and eliminate layers of hierarchy

But why would companies all do it at the same time like it’s a trend?

When interest rates were effectively zero, companies were borrowing and spending without any concern. In good times, the middle management layer tends to grow faster than the productive workers. Easier to hire folks when the criteria are vague. So when conditions turn around, upper management looks to where the greatest proportion of expenses without corresponding profits lie -- cut middle management.

In my experience they didn't. The managers did something. Witout them, senior coders become that layer of management.

They spend less time coding and more time managing.

So the company is paying for that organizing work all the same.

Probably overpaying for it, since a level up coder is now doing cross-level-down management and doing less architecture as a result.

It’s a mix of cost-cutting, efficiency goals, and the rise of AI tools replacing coordination roles. And i think post-COVID remote work showed many orgs that fewer layers can still function. so now it's a trend driven by both necessity and FOMO on leaner structures.

>and the rise of AI tools replacing coordination roles

Despite working in technology sector that should see fads sooner than other fields, I've not seen or heard of any coordination roles being replaced with AI in any level of management yet, or even talks about incorporating it

>the rise of AI tools replacing coordination roles

Can you list these tools?

AI tools such as Notion AI, Coda AI, ClickUp AI, and Asana AI are taking over many coordination tasks. They auto-summarize meetings, assign tasks, and track progress. Slack GPT and Microsoft Copilot handle updates, recaps, and communication flow. And tools like Motion and Reclaim.ai help with scheduling. Zapier and Trello, especially with AI add-ons, automate tasks and workflows. These tools cut the need for middle managers by making teams more self-directed and efficient.

In one of my previous companies, they forced middle managers to go back to work as IC. I'd say it's just a way to force more work for the middle managers because they are still taking management work.

I wonder when we will see the next cycle. Might be decades away, or even never, if it ends up with a hot war.

I really need to convince my wife to sell our 2nd house ASAP, when there is still market.

Market in general chases trends. That being hiring or firing. And reducing cost is a tool with proven record to increase stock price in at least short term. And they want to get that increase from somewhere.

Not that there isn't bloat in many places.

Professional managers may not be able to do any actual work or bring about effective change /management and are thus just a layer for decision making/blocking and organisational hierarchy without crystal clear impact

https://www.paulgraham.com/submarine.html

People are susceptible to peer pressure. You see other people doing it, you want to do it yourself

Perhaps they just hit a limit on the number of ICs they could layoff so they looked to MM next

If it looks like that its cause they are all missing quarterly targets given to Wall St previously. Standard playbook when that happens - cut costs/off shore/outsource/layoff/sell off teams etc

Reply on news.ycombinator.com