Corporate Bloodletting: Why Are Companies Cutting Managers?
2025-01-06
US public companies have slashed middle-management roles by roughly 6% since the pandemic hiring boom, according to a recent WSJ report. This wave of cuts reflects a shift in corporate strategy. Companies, initially over-investing in organizational capital during rapid growth, now face pressure to reduce costs as revenue growth slows. The article explores the potential downsides of this approach, questioning the balance between cutting too much and letting costs bloat. It also raises concerns about the potential loss of talent and the overall contagion effect across the corporate sector, leaving more questions than answers about the long-term impact.
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