Corporate hierarchies are flattening again — this time under the influence of AI. As digital agents automate reporting and routine tasks, consulting firms and tech leaders predict fewer layers of middle management. Meta, Citi, and UPS already cut thousands of managers in recent years, and now AI-native platforms like Factory are showing how one person can oversee larger teams.
AI’s New Wave
IBM has deployed thousands of agents across client projects, while McKinsey envisions “megamanagers” leading leaner teams supported by technical specialists. Experts say human managers won’t supervise AI agents the same way they manage people, signaling a fundamental shift in organizational design.
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