Middle managers are caught in the crossfire. Recent decisions by some industry giants underscore a growing trend: cost-cutting measures that disproportionately impact this vital layer of leadership.
“๐๐ฐ๐ฎ๐ฆ ๐ฐ๐ณ๐จ๐ข๐ฏ๐ช๐ป๐ข๐ต๐ช๐ฐ๐ฏ๐ด ๐ธ๐ช๐ญ๐ญ ๐ฐ๐ง๐ต๐ฆ๐ฏ ๐ฑ๐ณ๐ฆ๐ข๐ค๐ฉ โ๐ฐ๐ถ๐ณ ๐ฑ๐ฆ๐ฐ๐ฑ๐ญ๐ฆ ๐ข๐ณ๐ฆ ๐ฐ๐ถ๐ณ ๐จ๐ณ๐ฆ๐ข๐ต๐ฆ๐ด๐ต ๐ข๐ด๐ด๐ฆ๐ตโ, ๐ฃ๐ถ๐ต ๐ช๐ฏ ๐ต๐ช๐ฎ๐ฆ๐ด ๐ฐ๐ง ๐ถ๐ฏ๐ค๐ฆ๐ณ๐ต๐ข๐ช๐ฏ๐ต๐บ ๐ข๐ฏ๐ฅ ๐ด๐ต๐ณ๐ฆ๐ด๐ด, ๐ต๐ฉ๐ช๐ด ๐ด๐ฆ๐ฏ๐ต๐ช๐ฎ๐ฆ๐ฏ๐ต ๐ค๐ข๐ฏ ๐ง๐ฆ๐ฆ๐ญ ๐ญ๐ช๐ฌ๐ฆ ๐ฃ๐ฆ๐ต๐ณ๐ข๐บ๐ข๐ญ, ๐ฃ๐ณ๐ฐ๐ฌ๐ฆ๐ฏ ๐ฑ๐ณ๐ฐ๐ฎ๐ช๐ด๐ฆ๐ด ๐ข๐ฏ๐ฅ ๐ฆ๐ฎ๐ฑ๐ต๐บ ๐ธ๐ฐ๐ณ๐ฅ๐ด.” (From an Insights Blog post).
That’s what seems to be happening now.
โจSouthwest Airlines, known for its employee-first culture, announced its first-ever corporate layoffs, affecting 1,750 employees.
โจA recent issue of Fortuneโs CEO Daily newsletter stated that Ford will not be giving stock bonuses to half of its 3,300 managers (1,650), tying rewards to tougher performance metrics.
โจMeta announced plans to reduce its workforce by 5%, about 3,600 employees, framing it as performance-basedโyet they plan to give their top executives bonuses up to 200% of their base salary this year.
โจStarbucks laying off 1,100 of its corporate staff as they simplify structure, remove layers to create smaller, more “nimble teams.”
Canada isn’t insulated from layoffs either.
โจRogers laid off 400 customer service staffโyet they “continue to grow and hire people.” Why not re-train those who are being let go?
โจBell Canada has offered severance to 1,200 of its unionized employees.
Whatโs the impact from all this?
Lower morale, increased burnout, and growing turnover. Studies show that layoffs and reduced incentives lead to a 71% decline in motivation and 65% of employees feeling overworked. Survivors often fear theyโre next, fueling even more attrition.
So, what can middle managers and affected employees do?
โ ๐๐ญ๐ซ๐๐ง๐ ๐ญ๐ก๐๐ง ๐๐จ๐ฎ๐ซ ๐๐๐ซ๐ฌ๐จ๐ง๐๐ฅ ๐๐ซ๐๐ง๐: Be visible, showcase your impact, and align your work with key business priorities.
โ ๐๐ฉ๐ฌ๐ค๐ข๐ฅ๐ฅ ๐๐ง๐ ๐๐๐๐ฉ๐ญ: AI and automation are shifting job demandsโstay ahead with leadership, data, and strategic thinking skills.
โ ๐๐ฑ๐ฉ๐๐ง๐ ๐๐จ๐ฎ๐ซ ๐๐๐ญ๐ฐ๐จ๐ซ๐ค: Build relationships inside and outside your company to keep future opportunities open.
โ ๐๐ฑ๐ฉ๐ฅ๐จ๐ซ๐ ๐๐๐ซ๐๐๐ซ ๐๐ฉ๐ญ๐ข๐จ๐ง๐ฌ: If your role feels unstable, prepare for a pivot before it becomes necessary.
โ ๐๐๐๐ค ๐๐๐ฅ๐ฉ ๐๐ซ๐จ๐ฆ ๐ ๐๐๐ง๐ญ๐จ๐ซ ๐จ๐ซ ๐๐จ๐๐๐ก:ย If you are feeling uncertain about your next career move, seek the help of a mentor or coach.
Layoffs and performance cuts are harsh realities, but those who stay proactive and adaptable will thrive.
How are you preparing for the shifts in todayโs workplace? Share your thoughts in the comments below ๐๐พ
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