Managers Now Supervise Twice as Many Employees as Five Years Ago

If it feels like managers are taking longer to respond to emails and requests, the issue may be less about laziness and more about overload: today, mid-level managers oversee nearly twice as many employees as they did five years ago. That’s the conclusion of an analysis by Gusto, a payroll provider for 8,500 small and medium-sized businesses in the U.S. According to their data, in 2019, each manager supervised just over three employees—by 2024, that number had grown to nearly six. The shift reflects a broader trend: companies, especially in the tech sector, have been steadily reducing managerial layers. Now, a new force is accelerating the change—artificial intelligence, which is increasingly capable of handling core management tasks.

Gusto economist Nick Tremper notes that the decline in managerial roles at small businesses has largely come through attrition: departing employees weren’t replaced, and their duties were redistributed among those who remained. The trend was most pronounced in service industries—restaurants, cafes, hotels—where job cuts were a direct response to rising wages and higher interest rates following the pandemic. But the same pattern is emerging at major tech firms, where it’s been given a name: The Great Flattening. Microsoft, for instance, has formally announced plans to reduce management roles as part of its AI strategy; its most recent round of layoffs affected 9,000 workers. Amazon began reevaluating its management layers as early as 2023. Google has cut its number of vice presidents and other senior leaders by 10%. Meta has been systematically streamlining its hierarchy since last year.

The role of artificial intelligence remains indirect—for now. Employees increasingly turn to AI for guidance or instructions, bypassing their managers altogether, while managers themselves are using algorithms to automate parts of their workload. It remains unclear which specific functions are most at risk—and to what extent. Still, the effects are already becoming visible. Gusto’s research shows that industries with a higher share of managers tend to exhibit greater labor productivity. This is particularly critical for early-career employees, who rely on mentorship, training, and consistent feedback—things automated systems are not yet equipped to deliver reliably.

As Tremper puts it, "The middle manager has become almost a cultural punchline." But if that role continues to disappear, businesses may soon face consequences for which no one is fully prepared.