Summary of Key Points
In July 2026, major companies such as Tencent, JD.com, and ByteDance took significant actions against their middle-level managers: they abolished management titles, eliminated intermediate layers, and linked management behaviors to performance, with the core objective of making management more accountable for results. Behind these changes is the impact of AI technology, which has replaced the middle levels' traditional roles in information dissemination and process control, significantly reducing the value of managers who solely focus on supervising employees, relaying messages, and submitting reports. In the future, organizations will become more flat and flexible, with teams formed dynamically based on project needs. Three types of middle-level managers—those who can only manage but not get work done, those who merely pass information up and down, and those who provide reports without adding value—are at risk of being eliminated in the AI era.
I. Major Companies Are Making Changes: Middle-Level Titles and Hierarchies are Being Reduced
Although the approaches vary among these companies, they all aim to dismantle the traditional middle-level structure:
- Tencent: Titles no longer accompany individuals permanently. The gaming department is piloting a "responsible person" system, replacing titles like "director/group leader" with "responsible person/member." Management is now seen as a temporary role; for example, someone may be a "responsible person" for a project and revert to an ordinary member once it is completed. The rank of frontline managers is determined by their professional capabilities, and their management roles (indicated by M-labels) are adjusted dynamically based on project needs to prevent them from holding positions without contributing.
- JD.com: Two levels of middle-level management (C4 and C5) have been eliminated in the retail department, with all managers now reporting directly to C3. This reduces the need for two layers of communication, making decision-making faster.
- ByteDance: "Leadership" is now included in performance evaluations, not only based on business results but also on whether management actions are effective (e.g., holding unnecessary meetings or submitting meaningless reports). CEO Liang Rubo explicitly stated that management actions that do not add value will be negatively impacted on performance.
II. AI Is the Driving Force: It Has Taken Over Middle-Level Jobs
Why are companies suddenly making these changes? Because AI has taken over many of the tasks previously performed by middle-level managers:
- Information processing no longer requires multiple layers: AI can automatically organize reports and synchronize progress, reducing costs and time.
- Collaboration no longer relies on sequential reporting: AI tools enable direct task coordination across teams, eliminating the need for middle-level managers to mediate.
- Standardized tasks no longer require manual supervision: AI can create standard operating procedures (SOPs) that execute processes automatically, freeing middle-level managers from constantly checking whether subordinates are following steps.
III. These Three Types of Middle-Level Managers Are at Risk: They Are Most Likely to Be Eliminated in the AI Era
In the AI era, the following three types of middle-level managers are most vulnerable:
- Those who can only manage but not get work done: Those who are detached from frontline operations and cannot perform tasks themselves, focusing only on supervising and engaging in office politics. For example, when a team encounters technical issues, they might simply say, "You figure it out," without providing any help.
- Those who only pass information up and down without solving problems: They hold frequent meetings to relay instructions from above to below but never take action to resolve issues. For instance, if an employee reports a customer refusal to sign a contract, they might merely reply, "I'll talk to the leadership," without analyzing the cause.
- Those who only provide reports without adding value: They create impressive PPTs and lengthy reports but their management actions are counterproductive. For example, they might interfere with ongoing projects by changing processes unnecessarily.
IV. What Will Companies Look Like in the Future?
Organizations in the AI era will undergo three major changes:
- No fixed departments, teams formed around tasks: Employees will no longer be permanently assigned to specific departments but will join temporary teams based on project needs, which will disband once the project is completed.
- Management is a responsibility, not a title: Managers will be evaluated based on their ability to lead teams to achieve results. For example, someone might temporarily take on a leadership role if they can complete a challenging project; otherwise, they will be reassigned.
- HR Must Play a Key Role: HR will need to design flexible organizational structures and evaluate the true value of managers, helping employees adapt quickly to dynamic teams.
In short, companies in the future will not need middle-level managers who merely act as messengers but individuals who can handle tasks effectively, understand the business, and work with AI to achieve results.
(Quick survey: Has your company started making similar changes, such as streamlining hierarchies or encouraging managers to get involved in actual work? Feel free to share your thoughts in the comments section!)