Artificial Intelligence is not just replacing routine jobs anymore. A new trend emerging across the tech industry suggests that middle managers may now be among the biggest targets for layoffs.
According to recent reports, several major tech companies are moving away from traditional management structures and embracing leaner, AI-driven teams.
Coinbase, Meta, Block, and other firms are reportedly reducing management layers while expecting leaders to become more “hands-on.”
The latest buzzword in the industry is “player-coach” — managers who not only supervise teams but also directly contribute to coding, operations, and execution.
Companies increasingly believe that AI tools can handle much of the coordination and reporting work once managed by middle-level executives.
Coinbase CEO Brian Armstrong recently announced major restructuring and openly stated that the company would eliminate “pure managers,” meaning employees whose roles are limited only to supervision. The company is reportedly cutting around 14% of its workforce as part of the shift.
The impact of AI on workplace structures is becoming increasingly visible. Managers are now expected to oversee larger teams while also understanding AI tools and contributing to actual work output.
Reports indicate that the average number of employees reporting to a manager has increased significantly over the past year.
Industry experts say employees who rely only on coordination skills without technical or operational knowledge could face growing risk in the AI era.
Companies are focusing on smaller, faster, and more efficient teams where AI handles repetitive tasks and data-heavy processes.
Even top executives are openly predicting the decline of traditional management roles.
Brian Chesky recently said that “people managers” may lose relevance in the future as AI changes workplace dynamics.
At the same time, analysts caution that AI is also becoming a convenient explanation for cost-cutting and restructuring.
Some experts believe companies are using the AI narrative to justify layoffs that may also be driven by economic pressures and investor expectations.
Still, one message is becoming clear across Silicon Valley: in the AI era, simply managing people may no longer be enough.
