The Middle Management Debate: Amazon’s Controversial Cuts
Amazon recently announced plans to cut thousands of middle management positions in an effort to streamline operations and reduce costs. CEO Andy Jassy’s restructuring strategy includes increasing the number of direct reports per manager, pausing new management hires, and even demoting some managers to non-leadership roles. The estimated cost savings? Between $2.1 billion and $3.6 billion.
At first glance, this might seem like a smart efficiency move. Fewer management layers could mean quicker decision-making and reduced bureaucracy. However, extensive research suggests that middle managers play a critical role in execution, engagement, and innovation. While trimming excess layers may save costs in the short term, companies that undervalue middle management risk losing the very people who turn strategy into results.
Middle Managers: The Missing Link Between Strategy and Execution
For years, middle managers have been viewed as bureaucratic intermediaries, but that perception is outdated. Research, including insights from McKinsey’s Power to the Middle, highlights how middle managers are essential to business success. They serve as:
- Translators of Strategy – Turning executive vision into clear, actionable steps.
- Culture Carriers – Influencing the daily work environment more than any corporate mission statement.
- People Developers – Coaching and mentoring the next generation of leaders.
- Agility Enablers – Adapting strategies in real time to meet evolving business needs.
Companies that invest in middle management consistently outperform those that treat them as an unnecessary cost.
The Hidden Power of Middle Managers in Global Expansion
Having worked in finance and international expansion, I’ve seen firsthand how middle managers keep businesses running smoothly across different markets.
During a recent expansion project in Spain, our team faced significant regulatory and tax challenges. It wasn’t senior leadership that tackled these issues—it was middle managers. They adjusted corporate strategies to comply with local laws, secured FDI approvals, and streamlined operational efficiencies to make the expansion successful.
This underscores a key reality of business: senior leaders set the vision, but middle managers make it happen. Eliminating these roles could slow down expansion, increase risks, and lead to costly mistakes.
Lessons from Google, Microsoft, and Netflix on Middle Management
Some of the world’s most innovative companies recognize the value of middle managers and build strategies around their success.
Google’s Project Oxygen: Data-Proven Managerial Value
Years ago, Google questioned whether managers were necessary. Their internal study, Project Oxygen, found that effective managers were one of the strongest predictors of team performance. As a result, Google developed a leadership framework focused on coaching, empowerment, and psychological safety.
Microsoft’s Culture Shift: Middle Managers as Change Agents
When Satya Nadella took over as CEO, he prioritized empowering middle managers rather than enforcing rigid hierarchies. He encouraged cross-team collaboration, decentralized decision-making, and a shift from control to enablement, leading Microsoft to a cultural and financial resurgence.
Netflix’s “Context, Not Control” Model
Netflix operates on a high-autonomy model, giving middle managers the authority to make key decisions rather than micromanaging them. This decentralized approach has helped Netflix remain adaptable in the ever-changing streaming industry.
The takeaway? Companies that empower middle managers see greater agility, engagement, and long-term success.
Why Middle Managers Are More Crucial Than Ever
In an increasingly hybrid and globalized workplace, middle managers are more important than ever. They provide the leadership necessary to keep teams aligned, engaged, and productive.
Key Research Findings:
- Companies that invest in middle managers see 21% higher profitability (McKinsey & Gallup).
- Employees with engaged managers are three times more likely to stay at a company.
- Organizations with strong middle management exhibit higher agility and resilience.
While eliminating middle managers may reduce short-term costs, it can also weaken leadership, slow execution, and create disengaged employees—ultimately costing businesses more in the long run.
How Leaders Can Empower Middle Managers
Recognizing the importance of middle managers is only the first step. Here’s how organizations can ensure they thrive:
- Shift from Control to Enablement – Trust middle managers with decision-making authority instead of micromanaging them.
- Invest in Leadership Development – Many middle managers are promoted for technical skills rather than leadership ability. Providing training in coaching, emotional intelligence, and strategic thinking can improve effectiveness.
- Create Clear Feedback Loops – Encourage regular, structured communication where middle managers can provide insights to senior leadership and receive actionable feedback from their teams.
- Recognize and Reward Impact – Middle managers often work behind the scenes. Publicly acknowledging their contributions can increase engagement and motivation.
- Leverage Technology for Smarter Decision-Making – Providing access to real-time data, analytics, and AI-powered insights can help middle managers drive better performance.
When middle managers are supported, businesses see improved execution, higher employee retention, and stronger financial results.
The Future of Work Depends on Middle Managers—Are You Ready?
Reading Power to the Middle reinforced what I’ve long believed—middle managers aren’t just necessary; they’re essential for business growth.
If you’re a senior leader, ask yourself: What are you doing to empower your middle managers?
If you’re a middle manager, consider: What support do you need to perform at your best?
Let’s start a conversation. Drop a comment below—I’d love to hear your thoughts.
Leave a Reply