The Great Unbossing: Why Middle Managers Are the #1 Target for AI Layoffs

If you're a middle manager reading this, you need to pay attention.

The "Great Unbossing" isn't just a catchy term—it's a corporate movement that's eliminating middle management positions at an unprecedented rate. And if you're not actively preparing, you could be next.

What Is the Great Unbossing?

The Great Unbossing refers to the systematic elimination of middle management layers at companies worldwide. Organizations are restructuring their hierarchies in favor of flatter structures, with executives communicating directly to individual contributors and bypassing traditional managerial layers.

This isn't new—companies have been "rightsizing" and "flattening" since the 1980s. But what is new is the scale and speed at which it's happening, fueled by AI capabilities and economic pressure.

The Numbers Don't Lie

The data on middle manager layoffs is stark:

Middle managers are bearing the brunt of corporate restructuring—disproportionately more than any other level.

Amazon: The Case Study

Amazon has become the poster child for the Great Unbossing. Here's what's happening:

• 14,000 layoffs announced in late 2025
• Additional 16,000 layoffs confirmed in January 2026
• Total: 30,000 jobs cut—approximately 10% of corporate workforce
• Primary target: Middle management and corporate overhead
• Projected savings: Up to $5 billion from management cuts alone

CEO Andy Jassy has been explicit about the goal: make Amazon operate like the "world's largest startup" by "removing layers" and "increasing ownership." The company established a "no bureaucracy email alias" to identify ways to innovate faster.

This isn't just Amazon. Major companies like Bayer, Novartis, Meta, and Google have all pursued similar strategies.

Why Companies Are Doing This

The corporate pitch sounds appealing:

• Flatten the org → faster decision-making
• Remove bureaucracy → more agility
• Direct communication → better alignment
• Cut costs → improved margins

And it sells to investors. But here's what's really driving it:

1. AI Can Now Do What Managers Did

Many traditional middle management functions—status reporting, resource allocation, performance tracking, meeting coordination—can now be handled by AI tools. Companies see an opportunity to automate coordination work.

2. Economic Pressure

The corporate ask is always "do more with less, faster." Now the expectation has evolved to: "Come to me proactively with what you're going to do to increase your output AND reduce your workforce."

3. The $200K-$350K Problem

Middle managers at major companies cost $200,000 to $350,000 annually in total compensation. When you multiply that by thousands of positions, the savings are massive.

The Human Cost

While companies celebrate "efficiency gains," the reality on the ground is brutal:

Remaining Managers Are Drowning

• 75% of millennial middle managers feel overwhelmed, stressed, or burned out
• 54% of mid-level employees report the highest burnout rates
• Nearly half of middle managers surveyed said they were likely to quit within a year due to job stress

The managers who survive the cuts are expected to manage significantly larger teams with less support. As we discussed on the podcast, this doesn't make for an effective conduit from senior leadership to individual contributors.

Value Is Being Lost

Middle managers aren't just paper-pushers. They're the connection between strategy and execution. When you remove them:

• Employees lose support, guidance, and feedback
• Decision-making bottlenecks shift elsewhere
• Institutional knowledge walks out the door
• 70% of team engagement is influenced by the direct manager

Gen Z Is Opting Out Entirely

Here's an ironic twist: while companies are cutting middle management, younger workers don't even want those jobs anymore.

• 52% of Gen Z professionals are against becoming middle managers
• 72% prefer individual contributor paths focused on personal growth and skill development
• 75% of Gen Z prefer advancing as individual contributors rather than pursuing management

This creates a looming leadership pipeline crisis that companies aren't addressing.

What This Means for You

If you're currently in middle management, here's the hard truth from our episode:

"If you did great last year managing your team and it was just human beings, that's not going to be enough for this next year."

Companies aren't just looking to cut heads—they're looking for managers who can demonstrate value in the AI era. If you're not actively positioning yourself as an AI-forward leader, you're putting yourself and your team at risk.

How to Protect Yourself

Based on our work with clients—including senior VPs worried about job security—here are the strategies that work:

1. Become an AI Orchestrator

Don't just manage people. Manage AI + people. Demonstrate that you can:

• Identify where AI can absorb work
• Reduce headcount requests for new projects
• Automate repetitive tasks on your team
• Measure and communicate efficiency gains

As James said: "You should start thinking about where you could use AI agents. If you have backfill roles that you want to replace, you should look at whether or not you can leverage AI to absorb some of that work."

2. Hold Back Backfills Strategically

When team members leave through natural attrition:

• Don't immediately request backfills
• Use AI to absorb the work if possible
• Hold those positions for the inevitable reduction-in-force request
• This protects your existing team members

Every year, there's at least a 10% reduction ask. This year it's going to be bigger and steeper.

3. Document Your Value Equation

Know exactly what value you bring and quantify it:

• Time saved
• Costs reduced
• Revenue generated
• Automations implemented
• Team performance improvements

Make the business case for your role before someone else decides it's unnecessary.

4. Get Your High Performers on the AI Train

If you have high performers on your team:

• Get them involved in AI adoption
• Have them identify where AI can accelerate their work
• Move menial tasks off their plates
• Build a team that's AI-augmented, not AI-vulnerable

5. Make the Business Case for Better Tools

Many corporate AI tools are "neutered"—restricted in ways that limit their effectiveness. Senior leadership often doesn't know how much better public AI tools are.

Be vocal about:

• The limitations of existing internal tools
• What better AI could enable
• The ROI of proper AI investment

This positions you as a strategic thinker, not just a people manager.

6. Build Case Studies

Even micro-scale experiments demonstrate value:

• Test AI tools on your own work
• Measure the impact
• Document the results
• Share with leadership

This becomes evidence that you're not just an adopter—you're an orchestrator.

The Bottom Line

The Great Unbossing is real, it's accelerating, and middle managers are in the crosshairs.

But this isn't just about survival. The managers who thrive in this environment will be the ones who:

• Embrace AI as a force multiplier
• Demonstrate measurable value
• Position themselves as strategic leaders, not just people coordinators
• Help their companies navigate the transition

The old playbook—build your team, request headcount, manage humans—is obsolete. The new playbook is about managing hybrid teams of humans and AI, driving efficiency, and proving your value every day.

If you're in middle management, the time to act is now. Not next quarter. Now.

Get the Full Guide

We've created a comprehensive "Great Unbossing Survival Guide" with:

• Complete data on who's being targeted and why
• AI Orchestrator framework and templates
• Value documentation worksheets
• Weekly and quarterly action checklists
• Case study playbook for demonstrating AI ROI

Download the Free Guide →

Get Help Navigating This

We work directly with professionals at all levels—including senior VPs—helping them position themselves for the AI era.

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