tech
'I didn't want to be the guinea pig': inside tech's AI-fueled manager purge
Tech workers say AI-driven restructurings are eroding mentorship, support and paths to promotion across Silicon Valley
TL;DR
- Tech companies are leveraging AI to cut middle management roles and flatten organizational structures.
- Companies like Coinbase, Amazon, Block, and Meta have laid off thousands, specifically targeting management layers.
- AI tools enable more work to be shifted from managers to their reports, potentially making structural changes permanent.
- The role of middle managers is shifting, requiring them to be both supervisors and producers, often with expanded responsibilities.
- This trend could lead to accelerated decision-making but also complicate jobs, create bottlenecks, and reduce benefits from human interaction.
- Job openings for middle managers in the US have significantly decreased since 2022.
- At Meta, managers have seen their number of direct reports increase and are expected to contribute code, using AI for tasks like drafting documents and generating code.
- Block has assigned some engineering managers as many as 175 direct reports under its new AI-oriented structure.
- Some experts are skeptical, citing a history of failed attempts to break old hierarchies and noting that fewer management layers mean less scrutiny.
- The changes could lead to faster progress but also an increased likelihood of making mistakes.