Layoffs Signal New Era of Work

Welcome to The Shift, a weekly newsletter where I provide thought-provoking ideas to help you think differently about your career and money.

Last Week + This Week = It’s All Connected

Last week I discussed how Gen Z is reinventing work. Read here if you missed it. This week I dive into why middle manager layoffs could be the start of a new strategic alignment that ushers in a new era of work.

Layoffs in a Strong Economy?

What if there is a silver lining to recent layoff announcements?

Rather than obsessing over the number of layoffs (which are historically low), perhaps we should understand the fascination with the middle manager layoff¹ ?

Cutting the middleman is such an 80s move – it seems out of tune with current times.

• Companies are no longer bloated with too many people.

• The economy is on solid footing.

• There is a shortage of workers.

Wouldn’t losing the middle manager hurt more than help?

There must be more at stake than cutting costs.

Could corporations be ushering in a new era of work?

Trickle Down Impact

New eras are typically preceded by significant change.

Change that stems from the top. Which is exactly what we have now.

Shareholder activism is on the rise² , driving a record number of CEOs (and other executives) to depart their posts.

This top-tier shake-up can unintentionally trickle down to middle managers, as new C-suite executives install their own team.

No wonder the middle is feeling the pressure.

That is only part of the story...

This Time is Different

Get ready, new management means organizational changes are coming. Which will be needed if a new era is dawning!  

This won’t be an 80s style reorg.

The issues we face today are different. So, the solution must be different.   

Today’s CEOs see their most pressing problems as:

1. Bureaucracy

2. Talent acquisition and retention

3. Continuous change

The solution:

Simplify the corporate structure – to enhance the way we work. The goal is to improve efficiency and enable a quicker response to never-ending change.

Think about it - existing work patterns have already morphed, with employees working cross-functionally, sharing knowledge, and real-time innovation.

The proposed restructuring formalizes this organic evolution, by freeing us from the constraints of the traditional top-down hierarchy.

This isn’t about getting rid of people. This is about spreading people out across the organization. To better utilize their skills.

The potential payoff for the middle manager is improved time management and greater career ownership.  

Change that makes work easier, with more individual control, sounds like something worth giving a shot.

Growing Pains

Organizations are being reshaped for a future that embraces change.

Clearing the playing field is part of that process. It can be uncomfortable, and even painful.

Just know a shift beyond traditional cost-cutting is happening.

This will be a pivotal year. A new era of work is emerging.

An era that will create new, and better opportunities for all

Let’s make The Shift!

Lindsey

Sources:

1. Bloomberg says middle managers are most likely to be let go in current layoffs.

2. S&P Global Market Intelligence.