It may sound counterintuitive in an age of “lean hierarchies” and “autonomous teams,” but after years of pronouncements about their demise, middle managers are quietly reasserting their relevance. We unpack the shift driving this comeback and what it means for modern organisations.
The Decline Narrative
Before we explore the resurgence, it helps to understand why middle management fell out of favour in the first place.
- In the 2010s and early 2020s, many organisations embraced flatter structures, believing they would increase agility, reduce bureaucracy, and empower frontline employees.
- Advances in technology such as enhanced real-time analytics and AI that automates coordination and reporting seemed to make certain management overheads redundant.
- The pandemic triggered cost-cutting, and middle managers were often among the first to go (or to be merged into broader roles).
- Gartner has forecast that by 2026, 20 percent of organisations will use AI to flatten their structures, cutting more than half of current middle managerial roles.
- In fact, a recent Deloitte analysis observed that U.S. employers were advertising 42 percent fewer middle management positions in late 2024 than in spring 2022.
- That said, the decline narrative has always been more nuanced than it appears. For example, while some sectors aggressively reduced mid-layers, in others the structures simply evolved or were re-labelled.
So the decline of middle managers was exaggerated, especially since the constraints exposed by these cuts have led many leaders to reconsider.
Data That Suggests a Reawakening
Here are several data points and studies that signal a revival, or at least a reappraisal, of middle managers’ role in organisations today.
1. Middle managers as a stable or growing share of the workforce
Contrary to the flattening narrative, the proportion of middle managers in the U.S. labour force has risen over decades. In 1983, managerial roles (broadly defined) represented about 9.2 percent of U.S. workers; by 2022, managers accounted for 13 percent.
This suggests that the trend lines are not purely downward, and that many organisations still rely on intermediated leadership.
2. Financial returns tied to strong middle management
McKinsey’s work shows that organisations with top-performing middle managers tend to outperform their peers in total shareholder return (TSR). Their research identifies 11 key managerial behaviours (e.g. coaching, consultation, operational discipline) that correlate with performance.
In other words: not every middle manager is equally valuable, but investing in high-impact ones pays dividends.
3. Productivity and innovation linkage
Across diverse settings – from startups to factories – analyses suggest middle managers account for up to 30 percent of organisational productivity gains. In the Italian Social Security Agency’s study, middle management contributions correlated with about 10 percent of productivity improvements.
If these figures are directionally correct, the removal of middling managers may cost more than short-term gains suggest.
4. Employee expectations and moral leadership roles
In one 2025 study, employees regarded middle managers as a moral compass: those who interpret and enforce the organisation’s ethos on a day-to-day basis. Given rising scrutiny on organisational values, ESG, and trust, this intangible role is becoming strategically important.
5. Limits of the “flattening experiment”
Some recent studies suggest that, even after widespread flattening, middle layers are creeping back.
- In 2024, middle management jobs in many sectors increased by just 1 percent – modest, but signaling return of hiring interest.
- In mid-sized companies (100–499 employees), the number of direct reports per manager rose 44 percent from 2022 to 2024 indicating both managerial stretch and pressure to reintroduce supports.
- Meanwhile, executives report feeling “drowned” by increased spans – the missing mid-layers have placed more burden on strategic leaders.
Why the Comeback Is Happening Now
The data points toward a recalibration. Organisations are recognising that middle managers just need to evolve. Here’s what’s driving that shift.
1. Complexity demands sustained coordination
As organisations scale and systems grow more interdependent, coordination – across functions, geographies, product lines – becomes exponentially harder. Middle managers serve as translators, boundary spanners, and integrators.
In simpler or nascent organisations, flat structures may suffice. But in more complex enterprises, the absence of mid-layers often leads to overload at the top or communication breakdowns.
2. Talent development and retention
One of the principal functions of middle managers is developing people. In a world in which skills get obsolete faster, constant upskilling and coaching are no longer optional, they are mission critical.
Without a robust middle layer, organisations struggle to provide career paths, succession pipelines, and leadership development. That often leads to burnout, attrition, and leadership vacuums.
3. Decision quality and accountability
Flattened structures can centralise decision burdens onto senior leaders, slowing agility. Middle managers act as filters — making tactical choices that align with strategy, but allowing senior leaders to focus on directional questions. Also, accountability becomes more distributed with healthy middle layers: fewer single points of failure.
4. Human trust, moral authority, and culture
Middle managers often embody “the company” in daily operations. They are the ones staffing decisions, interpreting policy, and influencing morale. For many employees, middle managers form the bridge between lofty strategy and daily tasks.
Given increasing concern on work culture, ethics, inclusion, and purpose, this human link can’t be fully replaced by systems or algorithms.
5. AI and automation forcing a redefinition, not elimination
Ironically, the rise of AI may drive a more meaningful comeback. As low-value managerial tasks (reporting, monitoring, basic coordination) become automatable, middle managers are freed to spend more time on value-add work: coaching, strategy execution, cross-function influence. Thus, rather than eliminating them entirely, organisations are pushing them to evolve — from command & control to orchestration & enablement.
What the “New Middle Manager” Looks Like
If middle management is returning, it’s not in its old clothes. Here’s how we see the role evolving:
| Past Expectation | New Expectation |
|---|---|
| Supervise & direct | Coach, mentor, and empower |
| Monitor & report | Sense-make across functions |
| Enforce adherence | Enable autonomy and decision-making |
| Process-centric | Outcome and culture-centric |
| Command | Influence across boundaries |
To succeed in this new paradigm, middle managers will need improved emotional intelligence, cross-disciplinary fluency, stakeholder management, and learning agility.
Risks & Considerations
Even with a comeback underway, leaders should proceed thoughtfully:
- Avoid recreating bureaucracies
The mistake is not middle management per se, but misaligned spans, overlapping roles, and unclear accountability. - Talent availability
Many organisations let mid-level leadership pipelines atrophy. Rebuilding capability in this layer will require sustained investment and patience. - Cultural resistance
In places where flat structures became a badge of modernity, reintroducing a layer can be met with pushback. The narrative must be about enabling, not controlling. - Balance with autonomy
The comeback is not a return to hierarchical excess. Middle managers must be enablers rather than gatekeepers.
Implications for Leaders & Organisations
- Rediscover the middle zone: Evaluate which parts of your organisation are overburdened, under-led, or dysfunctional due to lack of mid-layer oversight.
- Invest in capability building: Develop coaching, influence, strategic thinking, and cross-functional skills in middle managers — and free them from low-value administrative tasks.
- Recalibrate spans: Use data to define optimal spans of control — too many direct reports harms effectiveness; too few wastes capacity.
- Ensure voice upward and downward: Provide mechanisms for feedback, stakeholder alignment, and cross-team learning; give middle managers airtime in strategy dialogues.
- Measure what matters: Tie performance not to supervision metrics, but to team outcomes, cohesion, vector alignment, and culture.
Conclusion
Far from being obsolete, middle managers are re-emerging in a new guise – less as overseers and more as integrators, coaches, and culture custodians. The flattening experiments of recent years have underscored what many leaders quietly sensed: the climb to organisational maturity often requires a sturdy middle. The comeback is not about reverting to old models, but about reimagining and reinvigorating the layer that converts strategy into execution.
