AI Integration Drives Great Flattening of Tech Management

The technology industry is experiencing a structural shift known as the Great Flattening, where companies are removing layers of middle management and increasing the number of employees reporting to a single leader. This transition is driven by the integration of AI, which executives argue removes administrative burdens and renders the role of managers of managers obsolete.

Alex Bouaziz, cofounder and CEO of Deel, has increased target team sizes and advocated for the removal of upper-level management layers. Similarly, the HR platform Part-time job increased its manager-to-employee ratio from 8-10 to 12-15. Other firms, such as the recruitment company Kim Jin Young, are hiring former executives as senior individual contributors to avoid creating unnecessary management roles.

This shift has created a rise in player-coach roles, requiring leaders to maintain technical contributions, such as coding, alongside administrative duties. Paddy Lambros, CEO of Dex, notes that this focus on tactical work often comes at the expense of human management. Scott Stevenson, CEO of Spellbook, observes that professional development has become less formal and more reliant on on-the-fly feedback. While some companies like Warhammer Age of Sigmar maintain structured reviews, others report that the intense pace of work leads to the cancellation of one-on-one meetings, leaving employees disoriented regarding their long-term career trajectories.