DiscoverNerd Journey: Career Advice for the Technology ProfessionalOrganizational Flattening: Understanding the Trend, Career Challenges, and Opportunities (1/2)
Organizational Flattening: Understanding the Trend, Career Challenges, and Opportunities (1/2)

Organizational Flattening: Understanding the Trend, Career Challenges, and Opportunities (1/2)

Update: 2025-09-30
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What happens when layoffs lead to organizational flattening, fewer managers, and larger teams? It’s a trend we’re seeing in the tech industry at large right now impacting team dynamics and career paths. To understand what’s really happening and the overall impact, we pulled in former guests Abby Clobridge, Shailvi Wakhlu, and Leanne Elliott in a roundtable format.


In episode 347, we explore the trend and the unique challenges it presents to consulting firms, managers, and individual contributors working with and inside flatter organizations. Listen closely for the impact to job levels, what this means for top-tier individual contributors, how companies are thinking about knowledge management, employee loneliness and wellbeing, and where some unexpected opportunities lie for those willing to step up.


Original Recording Date: 09-27-2025


Topics – Framing Our Discussion and a Slightly Different Format, Defining the Trend, Impact on Career Structure and Ambiguity, The Challenge of Reaching Top Tier Positions, Internal Risk and Potential Loss of Knowledge, Strains on Execution, Impact to Team Dynamics, From Problem to Opportunity


1:01 – Framing Our Discussion and a Slightly Different Format



2:48 – Defining the Trend



  • Abby Clobridge is the founder and principal consultant at FireOak Strategies and has deep expertise in the realm of knowledge management. Abby was a guest in episodes 292 and 293. We wanted to get an outside perspective from someone who works with many different organizations on various projects.


Our question for Abby:



  • Within your customer base and set of prospects, do you see companies currently doing organizational flattening of management layers with an increased number of direct reports for managers? And if you have seen it, what do you think is the reason for this? We’ve heard of 20 or more people under a single people manager.

    • Several of Abby’s clients are going through huge changes, sometimes resulting in entire teams and departments (like IT) being eliminated. In some cases, IT work is being shifted to MSPs (managed service providers), which has pros and cons.

    • According to Abby, the economic climate and the rise of AI adoption has made this year tumultuous for everyone.

    • Abby is seeing companies put more and more people under a single people manager.

    • She tells us that managers with extremely large teams have no way to build real relationships. The large team often results in employees not being able to rely on their manager for much from day to day.

    • “That kind of dynamic is a recipe for cultural toxicity really quickly too.” – Abby Clobridge




4:25 – Impact on Career Structure and Ambiguity



Our question for Shailvi:



  • In our previous conversation we talked a lot about job levels. Do you think flatter organizations make it more difficult to clearly define those job levels, or are big companies that are cutting head count to flatten even thinking about this? What do you wish these companies would consider?

    • “The stated reason that companies move towards flatter organizations, I think, is because they want to get rid of hierarchy. They want to say…we don’t want the lack of a higher title to restrict you from having a greater impact on the company. And I think that’s a fair goal…. However, I think in reality how it actually ends up playing out is, one, when you have a very flat organization…people don’t know what will be rewarded. And two, there is a lot of ambiguity about what everyone’s job is…. If everyone is responsible for something, typically no one is responsible for something.” – Shailvi Wakhlu

    • It makes sense that a company would want people at all levels to feel empowered to contribute.

    • Accountability comes through making distinctions in roles. Shailvi gives the example of senior engineers being expected to be more on top of certain things, and the same expectation would then not apply to junior engineers.

    • People are thinking about the kind of contributions that would be rewarded within an organization as well as how to grow their career. Typically, titles are used to acknowledge the level of contributions an employee has made. Moving from one well-defined job level to another gives a person a sense of progress and something to aim for.

      • “So, if there is not that definition of what is expected at each level, some people…may not have the tools to figure out what they should aim for…. Instead, I think the reason people started defining job levels was so that you could anchor on outcomes and impact.” – Shailvi Wakhlu



    • Years ago
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Organizational Flattening: Understanding the Trend, Career Challenges, and Opportunities (1/2)

Organizational Flattening: Understanding the Trend, Career Challenges, and Opportunities (1/2)

John White | Nick Korte