Meta and Cisco Cut Thousands of Jobs as AI Flattens Organizations

Meta just terminated 8,000 employees, and Cisco cut 4,000 loose, CNBC reports. This kind of disruption is part of something that has been going on for decades, as any former IBM or Unisys employee will tell you. It's part of a great flattening which continues unabated. The traditional corporate structure is being turned upside down, and it's affecting many companies.

Shaun Warman, in his latest letter, documents a structural shift taking place under the feet of many companies. He calls it “The Great Flattening,” which is very appropriate. The traditional pyramid — CEO at the apex, three to four management layers descending to engineers in teams of six to eight — is being compressed from both ends. Middle management is the most visible casualty, but the cascading effect on titles, responsibilities, and career paths is more interesting than the headcount math suggests. Warman's observations aren't new, though - they're part of a trend that's been underway for decades.

Warman is spot on, except for one thing. The great flattening – or at least talk of it – has been underway for decades. Talk of flattening the pyramid started in the 1980s. As the economy evolved in the 1970s, our belief in the ideal of the pyramid structure came tumbling down, the victim of its own outdated, top-down power structure, John Naisbitt wrote in his 1982 work, Megatrends. This change wasn't sudden - it was a result of shifting economic and social trends.

In 1994, William E. Halal, writing in the Academy of Management Journal, observed how highly centralized hierarchies are decomposing into decentralized, market-driven systems. This transition from hierarchy to enterprise requires a drastic change in executive roles. And yes, middle management was constantly taking a beating through all these flattening trends. The idea of managers interacting with employees as equals also took hold as the internet and web swept the world later in that decade.

This shift was followed shortly thereafter by social media, which changed the way companies communicate and operate.

Imaginative leaders even located their desks in cubicles within the main working areas of their companies to signal accessibility. They wanted to show that they're approachable and willing to listen to their employees. “The pyramid is becoming a plateau,” Warman writes. Directors, managers, and individual contributors are “collapsing into one lead role running 25 contributors paired with persistent AI agents. Span of control jumped from 8.1 (2013) to 12.1 (2025) and is on track for ~25 by 2028.” This change is significant, and it's altering the way companies operate.

As the organizational chart is being redrawn, Warman predicts that with fewer managers in the middle, decisions will move faster because there are fewer escalation steps. Coordination overhead lands on the lead who now runs twenty-five people instead of seven. However, this trend may also mean that companies may be cutting off their pipelines for future senior leaders. They won't have as many experienced managers to draw from, which could lead to a lack of qualified candidates for top roles.

A suddenly flattened organization can quickly lead to employee confusion and dissatisfaction, ultimately affecting productivity, according to Korn Ferry analysts. In their survey, they found 43% of employees say their leaders “aren’t aligned,” and 37% say the lack of managers “has left them feeling directionless.” This lack of direction can lead to a decrease in productivity and job satisfaction. Employees don't know what's expected of them, and they don't have a clear path forward.

The lack of alignment and direction occurs as senior executives are left to pick up the slack on top of their heavy strategic workload, the analysts continue. Instead of fully focusing on crucial business decisions and growth plans, now they also have responsibility for the day-to-day issues their managers handled, only with less time to deal with everything. The result is less time for strategic planning, collaboration among their peers, and communication with their direct reports. This can lead to a range of problems, including poor decision-making and a lack of cohesion among team members.

At least 41% of employees in Korn Ferry’s 2025 Workforce survey indicated that their organization had slashed management layers. This trend is expected to continue, with significant implications for employees, companies, and the future of work. It's likely that we'll see more companies flattening their organizations in the coming years.

As the workplace continues to evolve, it's clear that the traditional pyramid structure is no longer effective. The great flattening, driven by AI and other technological advancements, is changing the way companies operate and the way employees work. While this trend may bring about increased efficiency and productivity, it also poses significant challenges for employees and companies alike. As Warman cautions, eliminating middle managers may also mean dismantling the apparatus that produces senior leaders in the future. This could have long-term consequences for companies, including a lack of qualified candidates for top roles.

The future of work is uncertain, but one thing is clear: the traditional pyramid structure is no longer the norm. As companies continue to flatten their organizations, it's essential to consider the implications for employees, companies, and the future of work. With the rise of AI and other technological advancements, it's likely that this trend will continue, and companies must be prepared to adapt to the changing workplace. They'll need to find new ways to support their employees and develop their skills.

And as the great flattening continues, it's essential to consider the human impact. Employees who have spent years climbing the corporate ladder may find themselves without a clear path forward. Companies must be prepared to support their employees through this transition, providing training and development opportunities to help them adapt to the changing workplace. This might include retraining programs or mentorship opportunities. They'll need to help their employees develop new skills and find new ways to contribute to the company.

But what does the future hold for companies that have flattened their organizations? Will they be more efficient and productive, or will they struggle to manage the lack of middle management? They'll need to find ways to overcome the challenges posed by the great flattening. One thing is certain: the great flattening is here to stay, and companies must be prepared to adapt to the changing workplace. They'll need to be flexible and willing to try new things.

The great flattening of organizations is a trend that has been decades in the making. Driven by AI and other technological advancements, it's changing the way companies operate and the way employees work. While this trend may bring about increased efficiency and productivity, it also poses significant challenges for employees and companies alike. As companies continue to flatten their organizations, it's essential to consider the implications for employees, companies, and the future of work. They'll need to find ways to support their employees and develop their skills, and they'll need to be prepared to adapt to the changing workplace.

The future of work won't be the same as it was in the past, and companies must be prepared to evolve.