Its most aggressive at the higher tiers, because promotions are a tool of employee retention and “flattening” the management stack is a good way of pushing out the experienced, expensive older employees. You’ll also see a lot more outsourcing of department rolls, as C-levels opt for lowest-bidder contractors you can hire/fire inside a business cycle than big teams of veteran staffers who sit on the payroll thick or thin. That means fewer mid-level managers, as the actual process of team management is sent overseas or subcontracted out to temporary management firms.
McDonald Douglas and Yahoo both executed on this strategy back in the 90s to great effect. Stock valuations boomed, because they were able to create the illusion of cost cutting without impacting quarterly revenue. All it cost them was mountains of technical debt. And then nothing bad happened to either company.
Its most aggressive at the higher tiers, because promotions are a tool of employee retention and “flattening” the management stack is a good way of pushing out the experienced, expensive older employees. You’ll also see a lot more outsourcing of department rolls, as C-levels opt for lowest-bidder contractors you can hire/fire inside a business cycle than big teams of veteran staffers who sit on the payroll thick or thin. That means fewer mid-level managers, as the actual process of team management is sent overseas or subcontracted out to temporary management firms.
McDonald Douglas and Yahoo both executed on this strategy back in the 90s to great effect. Stock valuations boomed, because they were able to create the illusion of cost cutting without impacting quarterly revenue. All it cost them was mountains of technical debt. And then nothing bad happened to either company.