U.S. middle management cuts stress execs, leave staff adrift: Korn Ferry
CALIFORNIA, UNITED STATES — A sweeping reduction in middle management is leaving U.S. senior executives overwhelmed and employees feeling adrift, according to Korn Ferry’s latest Workforce 2025 Global Insights Report.
Nearly three-quarters (72%) of senior executives at U.S. companies report being stressed and stretched beyond their capabilities as organizations cut managerial layers in efforts to boost efficiency and streamline communication.
Korn Ferry’s report, which gathered responses from 15,000 workers in 10 countries, found that 44% of U.S. employees have already seen managerial levels trimmed at their companies.
“When management disappears, so does direction. A leaner organization today can mean a leadership crisis tomorrow,” Korn Ferry Consulting CEO Lesley Uren said in a statement.
Loss of direction and leadership support
While organizational flattening is intended to increase agility, it can backfire. Forty percent of U.S. employees say they now feel a lack of direction at work due to reduced middle management. The report warns that cutting these roles may impede communication and alignment, reduce leadership support, and ultimately spur turnover as top talent seeks opportunities elsewhere.
“Common assumptions about work are being rewritten in real time amid perpetual uncertainty and pressure points that are permeating the global workforce,” Uren added.
“And at the forefront is the shifting dynamics between an organization’s need for growth and stability and employees’ desire for fulfillment and balance in their lives.”
Hybrid work: A growing divide
Despite a national push for full-time office returns, 69% of U.S. workers say they would prefer a hybrid setup, citing greater flexibility (61%) and improved mental health (60%) as key benefits.
However, only 32% currently have access to hybrid work options, underscoring a significant gap between what employees want and what employers offer.
Economic pressures and job security
As companies brace for potential economic slowdowns—JPMorgan Chase forecasts a 60% chance of a U.S. recession in 2025—employees are prioritizing job security and compensation. While 66% feel fairly compensated, 72% worry that rising living costs are outpacing their salaries.
Generational and industry-specific challenges
The report also reveals that 75% of Generation Z workers experience challenges collaborating with other generations, often due to differences in communication styles and technology use.
Industry-specific findings show that healthcare and technology managers feel particularly stretched, with many fearing job loss to artificial intelligence (AI) in the coming years.
Korn Ferry’s findings suggest that as organizations pursue efficiency, they must balance structural changes with the need for clear leadership and flexible work arrangements to retain talent and maintain productivity.
