Good morning. Lily Mae Lazarus here, filling in for Ruth Umoh.
In the pursuit of speed and efficiency, many companies have aggressively trimmed layers of middle management. Chief executives like Amazon’s Andy Jassy and Meta’s Mark Zuckerberg have championed flatter organizational structures in an effort to reduce bureaucracy and spark innovation. But what looks lean on paper is proving increasingly costly at the top.
Senior executives are now shouldering more direct reports, managing tasks once owned by middle managers, and losing valuable time for strategic thinking. According to Korn Ferry’s 2025 Workforce Survey, 41% of employees say their organizations have cut management layers, and nearly half of senior executives doubt their ability to manage it all, outpacing even CEOs (40%) in self-doubt.
Middle managers have long served as the vital link between vision and execution. Without them, that connection frays, says senior client partner at Korn Ferry Maria Amato. In fact, 43% of employees surveyed by Korn Ferry say leadership isn’t aligned, and 37% report feeling directionless.
It’s not just clarity that suffers, either. Leadership development, mentorship, and career advancement—typically nurtured by middle managers—often vanish too. That threatens retention, particularly among high performers, who often leave for better career support that strong middle managers provide.
The fix isn’t simply to reintroduce layers. “Before you jump to solutions, whether it’s cutting or anything else, you have to diagnose your own organization,” Amato warns. Companies, she says, need to redesign leadership roles with greater intention, ensuring executives can stay focused on strategy while building an infrastructure that supports talent development.
Lily Mae Lazarus
lily.lazarus@fortune.com
Smarter in seconds
Carnival games.How Nvidia plays export whack-a-mole
Culture champion. Marriott’s CEO spoke out about DEI. The next day, he had 40,000 emails from his associates
Coping mechanism. Melinda French Gates offers advice Warren Buffett gave her when she felt overwhelmed
Hard truths. Jefferies chief shares email sent to Lehman Brothers’ CEO on day it collapsed—and the lessons it taught him
Leadership lesson
JPMorgan Chase boss Jamie Dimon on traits of a great future CEO:
“You want a person who’s analytical and detailed, and they run things well...But I think the most important one is heart. They give a damn, and people know it.”
News to know
President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell unless he cut interest rates. But the commander-in-chief might not have the authority to do so. WSJ
Tech leaders and analysts say the escalating U.S. trade war could slow the growth of domestic computing power by raising costs for building chip fabrication plants and AI data centers.FT
Secretary of State Marco Rubio warned that the U.S. may walk away from Russia-Ukraine peace talks unless substantial progress is made. NYT
Google heads to court this week for hearings that will determine the penalties for its illegal search monopoly. Fortune
The White House is moving to tighten control over independent agencies, requiring Trump allies to approve all new regulations from the SEC, CFTC, and others starting Monday.Bloomberg
Harvard University is turning to donors to help offset a federal funding freeze triggered by the school’s rebuke of demands by President Trump. WSJ
