Why are corporations cutting managers?

Remember that about 3-4 years ago, we experienced the Great Migration. The percentage of tech workers who moved to new companies was very high compared with historical migration patterns. Interests rates were still very low, companies had been buoyed by pandemic-related assistance, and inflation hadn't yet set in, so the salaries that were being offered were very attractive.

In the years since, the incentives to leave one's current employer have decreased. Salaries have stagnated, there's been belt tightening and layoffs, the pool of applicants competing for the same jobs has become bigger, and a lot of folks who've gotten cushy benefits like permanent WFH arrangements would have to go back to the office if they changed jobs.

But that means that a lot of tech companies are experiencing lower than normal attrition, but there's still professional growth happening, and the only way the companies have been able to reward employees is through promotions. That has led to bloat at the management layer, which this year many companies have tried to address, either by letting managers go or sending them back into IC roles.

I predict that due to "tenure lock" (where a lot of people who moved in the Great Migration have the same tenure at their current company) we're likely to hit a watershed moment that leads to another Great Migration later in the decade.

Why would Mark care about appeasing the market? He has a controlling interest in Meta and can’t be fired no matter what the market thinks.

You can accuse Meta of a lot of things. But being short term focused is not one.

I think as with everything, it depends on what end of the spectrum your company is at.

There are a lot companies, Volkswagen to name a prominent example, that have over time built up massive management layers that don't ultimately serve the company goals.

Getting rid of excess is something that is necessary because they have ballooned to expensive and unhealthy proportions.

Having none at all or too little obviously also has downsides.

Part of the problem:

https://47cleanupcrew.com/

"Of course they want to bring in Indians and Artificial Intelligence. Why would they want to pay a US citizen $100,000 a year or whatever the commensurate salary is for your job."