Artificial intelligence is one of the factors that drives medium to medium-sized businesses (SMBs) and reduces the number of middle managers.
SMB participates in companies like Amazon and Meta By reducing the number of middle managers, Bloomberg It has been reported Monday (June 30th).
Within SMB, the average number of direct reports for each supervisor doubled from three in 2019 to six in 2024, the report quotes payroll service provider figures. gusto.
According to the report, figures vary by industry, with fewer direct reports per manager of professional service companies, and more direct reports in areas such as hospitality and foodservice.
Gusto attributed this trend in part to SMBs, which, according to the report, attempts to mitigate the effects of inflation and the effects of higher interest rates.
Artificial intelligence could also play a role, the report said. SMB was interviewed for a report I said ai It was I've previously performed a task end By intermediary managers, such as generating slide decks and collecting project plans and feedback.
Pymnts reported in November that AI agents had made decisions up until recently that they needed humans manager. A sophisticated AI agent can navigate complex business processes independently, allowing humans to focus on high-value tasks.
Amazon CEO Andy Jussy I wrote it in message Shared with Amazon employees and posted that the company plans to reduce the number in September manager Each organization requires its employees to work primarily in the office as part of its efforts to “act like the world's largest startup.”
For managers, Jassy said Amazon aims to flatten the organization by asking each senior leadership team to increase the individual contributor's ratio to managers by at least 15%.
When Meta announced in March 2023 it planned to fire 10,000 more employees after cutting 11,000 jobs about four months ago, Meta CEO Mark Zuckerberg He said the latest cut is part of a restructuring It includes planning to flatten the company's organization, cancel lower priority projects, lower employment rates, and reduce recruitment team size.
Zuckerberg said the principles leading the meta include removing multiple layers of managers and studying the effectiveness of diversified workers, 10 direct reports, cancelling duplicate or low value projects, leab thinness in all organizations, building the optimal ratio of engineers to other roles, investing in AI and other tools, and studying the effectiveness of diversified workers.
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