During an interview with podcaster Lex Fridman nearly two years ago, Mark Zuckerberg addressed the question of how many managers a company should have. At that time, the Meta CEO had initiated the ‘Great Flattening,’ reducing middle managers as part of his ‘year of efficiency’ following overhiring during the pandemic.
Zuckerberg emphasized the importance of management but suggested a mathematical approach to determining the ratio of employees to managers. Before Meta’s layoffs, he discovered that each manager had an average of three to four direct reports, which he believed should ideally be seven to eight. This adjustment was necessary as the rapid hiring phase slowed down.
By ‘defragmenting the organization,’ Zuckerberg aimed to reduce latency in communication and empower employees more effectively. This strategy aligns with a leaner organizational structure capable of faster decision-making and execution.
In the same interview, Zuckerberg noted the uncertain global environment, including geopolitical tensions and economic challenges, reinforcing the need for a stable company position. Following Meta’s lead, Amazon and Google have also moved to flatten their organizational charts to enhance efficiency.
Amazon CEO Andy Jassy plans to increase the ratio of individual contributors to managers by at least 15%, aiming to remove layers and flatten structures. Similarly, Google CEO Sundar Pichai announced a 10% reduction in managerial roles to simplify operations.
Despite these efforts, some experts warn that eliminating middle managers could hinder workforce morale and execution of upper management goals. The trend continues as companies focus on efficiency post-pandemic hiring booms.
— new from Business Insider