Artificial intelligence is freeing up managers’ time, with workers turning to the tech for support|Giphy
If your boss seems slower to respond lately, they’re likely juggling more people than before. A new report by Gusto shows managers now oversee nearly six employees on average, almost double the number from 2019.
Gusto surveyed 8,500 small businesses and found that middle managers, roles that were already on the decline, are now even harder to find, and apart from normal attrition, AI is partly to blame.
This shift reflects a broader trend, known as the “Great Flattening,” in which companies reduce layers of middle management to cut costs.
AI’s role in reshaping management
Artificial intelligence is freeing up managers’ time, with workers turning to the tech for support.
According to some studies, employers are also inclining towards using AI to automate tasks that people managers would oversee.
Why it matters?
Gusto’s data shows that companies with more managers tend to experience better productivity. Experts warn that cutting too many could hurt mentorship, training, and long-term team cohesion.
But the trend is already catching up at firms like Microsoft, Google and Amazon. Last week, Microsoft announced that it’s cutting nearly 9,000 roles while betting big on AI, investing heavily in AI infrastructure, chips, and data centers, which will cost the company $80 billion.