Middle managers are responsible for overseeing teams without holding executive positions, and they are the ones, who increasingly feel the pressure. As businesses grapple with economic uncertainty, corporate restructuring, and the shifting demands of hybrid work, middle managers are being squeezed from all directions. Layoffs, burnout, increased expectations, and inadequate support have made their roles more difficult than ever. 

If it feels like this is the worst time to be a middle manager, data backs it up!

The rise of layoffs among middle managers

Once considered a steady rung on the corporate ladder, middle management roles are now under severe threat. Middle managers have increasingly become targets in layoffs, with recent data highlighting a significant shift. According to a Live Data Technologies analysis for Bloomberg News, middle managers now make up nearly a third of all layoffs, up from 20% in 2018. This shift reflects a broader trend where businesses, seeking to cut costs and boost efficiency, are trimming managerial layers.

Major corporations have joined the trend. For instance, Amazon is reportedly considering cutting up to 14,000 managerial roles, which could save the company an estimated $3 billion next year. Other organisations, like United Parcel Service (UPS) and Citigroup, have already initiated significant cuts, slashing 12,000 and 20,000 managerial jobs, respectively. UPS's move alone is expected to save over $1 billion. This trend, which mirrors the rise in mentions of ‘operational efficiency’ in company reports, reflects a growing consensus that leaner structures lead to agility in a challenging business environment.

The sudden rise in middle-management layoffs is not just about cost-cutting; it also speaks to a corporate shift toward “delayering,” a process of flattening organisational structures. “There’s a belief that the panacea is a flat organisation, where we can make decisions quickly, we can have shorter hierarchies and bigger spans of control,” says Amanda Jones, a professor of human resources management at King’s College London.

However, this strategy comes with its challenges. The elimination of middle managers creates a brain drain, as companies lose invaluable institutional knowledge and expertise. This loss often forces businesses to promote underqualified junior employees to managerial positions, a phenomenon known as “battlefield promotions.” According to Bill Schaninger, senior partner at Modern Executive Solutions, such promotions often skip traditional grooming processes, leaving inexperienced managers to shoulder greater responsibilities than they are equipped for.

The squeeze from above and below

Beyond the layoffs, middle managers find themselves in a precarious position, balancing the competing demands from executives above them and employees below them. They are the linchpins responsible for translating corporate strategies into actionable tasks for their teams, while also managing the emotional and psychological well-being of their employees. 

But who takes care of the middle managers?

A recent Glassdoor report revealed that confidence in employers among middle managers has plummeted, reaching levels typically seen among entry-level workers. Many middle managers face increasing pressure to do more with less as companies continue to cut costs. This is especially true in the age of remote work, where middle managers have the added burden of navigating the complexities of virtual leadership while maintaining team cohesion and productivity.

According to Schaninger, middle managers are now tasked with responsibilities that go beyond traditional people management. In addition to ensuring that employees meet their KPIs and develop new skills, managers are increasingly expected to support their teams’ mental health, ensure inclusion and equity, and foster an inclusive culture—often with little support from the top.

The growing mental health crisis among managers

As the workplace becomes more demanding, middle managers are paying a heavy psychological price. The stress of their roles has grown significantly, with managers feeling the strain of trying to juggle multiple responsibilities while ensuring their own mental well-being.

Research from UKG revealed that managers are more stressed than their direct reports, with 42% of managers saying they are more stressed than their teams (compared to 40% of employees). Even more troubling, one in four managers admit to feeling burned out “often” or “always.” Additionally, 57% of managers surveyed wish someone had warned them not to take their current jobs, and 46% say they are likely to quit their roles within the next year due to excessive work-related stress.

This “manager burnout” is particularly concerning because it can have a ripple effect on the rest of the organisation. As Michelle McQuaid, a workplace wellbeing expert, notes, “Managers are highly contagious. If a leader has high levels of wellbeing, you typically see that wellbeing ripple across the teams. And vice versa.” In many ways, middle managers are stuck in a thankless position, caught between pressure from leadership to hit performance targets and pressure from their teams, who are overwhelmed and struggling to keep up.

Managers are often expected to resolve the very issues that are overwhelming them. According to McQuaid, many middle managers feel trapped, unable to address their own mental health needs due to the high expectations placed upon them. This has led to a culture of burnout, where managers are not set up for success, despite being given ever-greater responsibilities.

The cost of flattening organisational structures

As companies continue to streamline their structures, they may find themselves facing long-term challenges. While delayering and flattening hierarchies can lead to short-term gains, such as increased agility and reduced costs, there are significant downsides that may not be immediately apparent.

For one, companies may lose the specialised skills and knowledge that experienced middle managers bring to the table. When organisations cut back on their managerial workforce, they also lose the institutional memory and interpersonal expertise that these individuals have cultivated over time. 

This not only affects the efficiency of day-to-day operations but also limits opportunities for younger employees to learn and develop their skills. As Amanda Jones notes, early-career workers who see limited advancement opportunities may mentally check out, or engage in aggressive competition for the few remaining roles, which can harm morale.

Moreover, despite the initial intention of delayering, companies still require someone to manage their teams. Promoting junior employees to these roles without proper training or support may lead to inadequate leadership, which in turn can damage company culture and productivity. As Schaninger warns, “More often than not, companies that strip away middle managers suffer mightily in the long run.”

Burnout and psychological safety

As the stress on middle managers continues to grow, businesses must find ways to address their mental health and well-being. One key area where companies can intervene is psychosocial safety—the creation of an environment where managers and employees alike feel safe to express concerns without fear of reprisal.

However, in many cases, managers are not receiving the support they need. McQuaid explains that the new psychosocial hazards Code of Practice gives managers the tools to identify and address mental health risks within their teams, but without proper training and support for their own well-being, these initiatives may feel like yet another burden. “It’s important that any training in psychosocial safety focuses as much on the wellbeing of managers as on their reports,” she says.

Middle managers need to be given the opportunity to report psychosocial hazards early and openly, before they escalate. But for this to happen, companies must foster a culture of shared accountability, where managers feel empowered to flag risks without fear of blame. “When human beings do complex work together, there will be hazards. The problem is when those hazards become high-risk because of frequency, impact, and duration,” McQuaid explains.

You can also read:

• Unique talent challenges in Australia & NZ: Accenture’s TA Head shares how they’re nailing value proposition
• Mastering your EVP: Startek Australia Head HR reveals winning strategies for talent acquisition
• Rob Olver's 360-degree guide to enhancing employee engagement and productivity with AI

HR’s role in empowering middle managers

Human Resources can play a crucial role in supporting middle managers during these challenging times. HR departments can serve as an intermediary between middle managers and the C-suite, acting as a safe sounding board for managers to raise concerns. McQuaid emphasises that HR needs to become the champion of middle management, ensuring that managers feel supported and trusted.

“If managers know that HR is their champion, not only will they be more likely to talk to HR about what’s going on and ask for support when they need it, but it also creates an opportunity to train and coach a generation of leaders who can deal with their own challenges instead of dumping them on the doorstep of HR,” McQuaid says.

In many ways, the current wave of layoffs, burnout, and pressure on middle managers presents HR with an opportunity to redefine its role within organisations. By advocating for the well-being of middle managers, HR can ensure that these vital leaders are not simply seen as disposable, but as key assets to the company’s success.

A time for change

Middle managers are facing unprecedented challenges, caught between the demands of executives and the needs of their teams. As layoffs and burnout rise, the role of the middle manager has never been more difficult—or more crucial. Companies must recognize the value these individuals bring and invest in their development, well-being, and success. Without this support, businesses risk losing not only their middle managers but also the essential knowledge, skills, and leadership that drive long-term growth and success.