I am only talking about tech orgs in a company and not other sectors like marketing, HR or sales. Feels like hiring individual contributors is still going on but there is a lot of managers/directors looking for jobs. Are there any stats that give a percentage breakdown of the layoffs?
If so, which level in the management is safer relatively speaking, if there is such a thing?
If a company decides to shutter a product or division, everyone might get laid off, from ground workers to middle management and even directors. If a company performs overall layoffs, it's going to lay off primarily from wherever they've overhired. One company might have overhired developers, another company might have overhired middle management, while a third company might have overhired sales.
Companies are generally trying to be pretty rational in only hiring positions that are required for the company to run/grow. Obviously they get this wrong all the time, but I'm not aware of any evidence they get this wrong more often about middle management.
I know there's a whole trope about middle management being useless, how you could cut it entirely and the company would still run just fine, but nothing could be further from the truth. A VP can't have 120 direct reports. There's no way for them to get the information they need to make good decisions, nor is there any way for their direct reports to get the information they need to make good decisions. It just doesn't scale.
ICs are vulnerable because they’re low-level, but they’re also more fungible, so they can be more easily transferred/find new jobs.
Management is more of a socio-political game (it’s all about the people). A huge chunk of your value is reputation, trust, and relationships - which are very much non-fungible.
So managers are vulnerable (like ICs), but non-fungible (like execs).
As they say: slow to hire, quick to fire.
So, yeah, vulnerable, but mostly because we suck as an industry at understanding and managing people as well as we manage money. If we were good at it, there wouldn't be such over-hiring and layoffs that cause me to see articles like this: https://hbr.org/2022/12/what-companies-still-get-wrong-about...
A company that fires all the "executives" is extremely rare.
But you can fire all the middle management layers and the company will continue to operate for a period of time, perhaps quite a long time.
The only tried and true way to achieve job security is to understand fundamentally how your firm makes its money and to make sure you're an important part of that value driver chain.
This is essentially an advert for their tool of course.
They execute.
You see, your directors, managing directors, VPs, presidents and C-suite people - they're all the high brass, i.e. the Majors, Colonels, and Generals. They're responsible for setting the vision and creating the strategic plan. They're not positioned for tactics and execution.
The people positioned for tactics and execution are the people who work with production, i.e. the doers. In the military, it's the Lieutenants and Captains that are on the actual battlefield. They're middle management. They're the people that fully understand the vision and strategy and yet are empowered to control the means for getting it done. They're in the trenches with the troops, enduring their pain and hardships, and building camaraderie. They're LEADING. THAT is what a middle manager does, or at least should be doing. If your middle manager isn't doing that then they should be replaced. If your company's high brass doesn't understand what a middle manager should be doing then you need to leave - it's unlikely you'll succeed pushing that rock up the hill and you can apply your energies elsewhere with an organization that has a clue for how to run things.
Sometimes, you have frontline managers who make a team amazing - I'm talking multiples of productivity. They're rare. You shouldn't fire them. If they lack the skill to make that impact visible, they'll still be on the list.
Sometimes, you have director+ folk who do great work at strategically aligning a group. Same thing: If they can make it visible that's what they do, and how it impacts the bottom line, they're in a better position than if they can't.
But in general, management value is harder to make immediately visible than IC value, and managers are producing less immediate and more long-term value. If you're about to run out of cash, they are an easy cut. You can always hire them back if you survive. Cutting ICs means cutting immediate value delivered, so they are less prone (if they deliver value. Fire your low performers)
If you're an IC thinking about management right now? Think carefully. Make sure you have a large IC component remaining in your portfolio. I'd still say "go for it" if you truly enjoy the challenges that come with managing, the differences aren't that stark. But if you're looking to optimize for career growth and retention, this is a higher risk path.
There is that narrative that started a decade ago that we need empathetic people managers that are doing a completely different jobs than ICs, and that their role is extremely valuable. The narrative seems to push the idea that ICs and engineers are extremely bad at inter-personal communication and therefore that higher class of better communicators is required.
I have never bought this and see a lot of middle manager doing busy work constantly syncing with other middle managers. The best companies I have worked for had big horizontal teams with technical managers. The worst companies have been hierarchical with multiple managers/directors all passing the buck to each other.
Middle management is basically managers managing managers. A few levels of those could be eliminated, causing more stress for the survivors, but the workers aren't actually affected so it's a direct cost savings on the back of the surviving managers.
They are uniquely vulnerable, typically higher comp without direct tie back to the margin and topline of the business, particularly true since you've excluded sales from this analysis.
"If so, which level in the management is safer relatively speaking, if there is such a thing?"
Do you know a C-level or c-level direct who can & will personally intervene on your behalf? If not, you're vulnerable.
Here's a Delotte report on how to find managers to lay off.[2]
There should be studies of how computerization of management affects span of control. What do JIRA and Slack do to it? Haven't found one yet.
(Now and then I mention the future being "Microsoft Middle Manager 2.0". Amusingly, neither Google nor Bing has the reference. It's from "How to Live Safely in a Science Fictional Universe", by Yu, where the protagonist has that program as a boss.)
[1] https://faculty.lsu.edu/bedeian/files/a-history-of-the-span-...
[2] https://www2.deloitte.com/us/en/pages/human-capital/articles...
So, for an individual company, it might be possible to dispose middle management. But certainly not for an entire industry.
Right question for business owner, who are the most important in business to run (VITAL important), and who are the least important.
Usually, investors consider, CEO as 80% of company cost, because good CEO have command of managers and hr's who are tightly coupled to him and could just hire all other need people from job market.
So, this could have slight differences in different industries, but mostly this mean, safest is CEO.
CEO usually have command of people for most important things (if he could not do himself, or don't want to do - accountant, hr, finance director, marketing manager, team-lead, in some industries could be lead architect and in some security).
All others could be changed to people from nearest college.
A company needs some middle management, but it is really easy to get more middle management than a company needs. If this is your company, then as soon as upper management realizes this they will reorganize and cut middle management. The same applies to all other levels of employment: if the company thinks there are too many people in a position some will be let go.
Anecdotally I can say that experienced engineering managers with a good track record are significantly more in demand in the industry than ICs.
There's a classic book called "The Bureaucratic Phenomenon" that delves into this very phenomenon. Interestingly, middle management doesn't exactly boost the value of the products or outputs, but it keeps growing to cater to its internal demands and desires.
I would imagine there are a lot less managers/directors jobs available to the open market, since many of these roles are hired internally. So it makes sense there are more managers looking for jobs, regardless of the job's perceived vulnerability.
The business still needs middle management, but they are cutting the weakest people. It just turns out that a lot of middle managers are weak.
tl;dr middle management stays with the company until collapse (give or take a few unfortunate incidents), long outliving their (and company’s) usefulness.