The Great Flattening: How AI is Dismantling Middle Management

Read how AI is transforming middle management and what HR can expect, through examples from Amazon, Meta, Oracle, and Block.

A new concept entered the corporate lexicon in 2025–2026: The Great Flattening. Gartner predicts that by the end of 2026, 20% of organizations will use AI to streamline their organizational structures, eliminating more than half of middle-management positions. The workforce reductions at Amazon, Meta, Oracle, and Block offer concrete examples of this broader shift.

This special report explains the mechanisms behind these changes through span-of-control data, examining which functions are most affected and the cost logic behind organizational flattening. It also explores declining engagement among remaining managers and asks a critical question: Who will develop the leaders of 2028?

The report concludes with three practical recommendations for HR and payroll leaders.