As companies are accelerating their use of automation and artificial intelligence (AI), the role of middle management sits in a space of ambiguity and insecurity. A recent study revealed that 41% of employers plan to downsize their workforce by 2030, largely due to AI advancements. This managerial trend has set off warning bells for the unique group of enterprise architecture middle managers, the culture-conducive roles that engender employee engagement and satisfaction. According to the latest Bureau of Labor Statistics data, there is a projected 6.1% decrease in the total number of managers by May 2025. In tandem, executive-level positions fell by 4.6%.
One of the first people to feel this changing tide—literally and figuratively—is Bob Friedland, a 50-year-old from Little Falls, New Jersey. Ever since losing his public relations job two years ago, he has been unable to land any of the 750 jobs he’s applied to. For Tiffany Fuentes, a 33-year-old resident of Bullhead City, Arizona, June was a crushing month. Her tech company recently cut its staff in half, leading to her layoff from the recruiting position. Both Friedland and Fuentes paint a vivid picture of the increasing pressures on middle managers in today’s economy.
Mid-level employees are more discouraged than ever, and the data supports it. They’ve seen a dramatic 4.5 percentage point decline in their confidence in the last year alone. This has created a perfect storm in which job seekers—managers included—are more and more likely to take low-paying positions. Industry reports indicate that 22% of managers and 32% of those transitioning to individual contributor roles are taking pay cuts to secure employment.
Stacey Dillon, a former PR pro who recently made the move to become an agency entrepreneur, stresses the importance of middle managers in organizations. In her presentation, she addresses the common misconception that middle management is bad, making the case that it’s critical for building culture, mentorship and organizational knowledge.
“Middle management is often misunderstood, but it’s essential, not just for operations, but for culture, mentorship and wisdom.” – Stacey Dillon
Dillon’s viewpoint resonates with a lot of people in the sector. They understand that competent middle management enhances employee engagement and increases innovation. She noted that middle managers serve as a vital connection between upper management and employees, helping to humanize leadership and align strategies with team needs.
“Middle managers are so uniquely positioned to humanize leadership, to connect strategy to people,” – Stacey Dillon
Unfortunately, even with these insights, the job search experience for people like Friedland and Fuentes is still riddled with barriers. Though still searching for a full-time position, Friedland has pivoted to freelance consultancy work. He knows the key role that corporate middle management plays as the grease in the machinery.
“When you’re dealing with a CEO, they don’t expect to have to double-check the work; they expect the work to come to them done and ready,” – Bob Friedland
Perhaps most troubling, Friedland believes there are dangerous consequences to removing these middle management positions.
“So if you remove that middle layer, you’re actually removing an important piece that can act as that gut check.” – Bob Friedland
Fuentes says he has been looking for a new job for the past two months. Sadly, the closing of doors has caused him to become discouraged. Now she’s stressed by the prospect of underpayment, as well as her old company’s questionable outlook.
“I didn’t realize there were so many job seekers with the same degrees [and] employment history that I have, and that it would be this difficult to find employment,” – Tiffany Fuentes
The plight of these job seekers highlights a troubling trend. Companies have been trimming their workforces even as they report high sales and profits. This trend holds true for small and midsize businesses as well. Supervisors are now responsible for an average of six direct reports, double the number from five years ago.
Companies of all stripes are moving quickly to adopt these new AI technologies. Consequently, workers are reconsidering their place within these evolving private-sector ecosystems. Dillon talks about the emotional toll of trying to find your way in this unfamiliar and daunting new job market.
“In this job market I’m reminded that career transitions aren’t just logical — they’re emotional— and human connection has become a core part of how I job search,” – Stacey Dillon
The conversation surrounding the role of middle management is becoming increasingly urgent as businesses grapple with adapting to new technologies while maintaining employee satisfaction. Thought leaders such as Dillon are calling on institutions to make greater financial commitments to these indispensable positions. They’re looking for leaders to stop treating these powerful cultural and strategic backbone positions as mere administrative roles.
“I hope organizations will continue to invest in those roles, not just as an administrative necessity, but as the cultural and strategic backbone to teams.” – Stacey Dillon
The bitter realization among those who’ve lost out is survival through the storm. Though Friedland has long past experienced many of the tensions and challenges, he is keenly optimistic that he’ll land somewhere good.
“Will AI speed us up? Yes. Can it replace certain functions? Yes. Can it replace every middle manager? Probably not.” – Bob Friedland
As job seekers tread through this fiery, erratic terrain, they are not only dealing with a practicality challenge, but an emotional challenge. The delicate balance between the use of technology and technology management changes daily. We need to keep talking about the power of human connection in the work environment.