Layoffs may trim costs, but they’re also cutting deep into the connective tissue of the workplace: middle managers. That’s the warning from Firstup, which today released its Manager Impact Survey, revealing that reductions in mid-level management are creating communication gaps, mentorship shortfalls, and weakened employee experiences.
The survey of 1,000 U.S.-based non-managerial employees at companies that downsized in the past year paints a stark picture: managers aren’t just supervisors—they’re the most trusted source of information, recognition, and career guidance. And when they’re spread too thin, organizations risk disengagement and stalled productivity.
Managers: Still the Backbone of Communication
Among the most telling data points:
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52% say their direct manager is their most trusted source for company updates. Only 10% say the same of senior leadership.
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86% rely on their manager to translate company changes into what those updates mean for their individual role.
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75% look to managers for recognition and appreciation.
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72% depend on their manager for career coaching and feedback.
In other words: when it comes to clarity, connection, and growth, employees overwhelmingly turn to their direct managers—not the C-suite, not HR, not company-wide emails.
“Managers are critical for relaying information, as well as translating organizational priorities into action, clarity, and connection,” said Bill Schuh, CEO of Firstup. “As companies adopt leaner organizational models, they risk losing the vital link between leadership and the workforce.”
Thinner Ranks, Bigger Problems
As layoffs thin the middle, remaining managers are struggling to keep up. 38% of employees report that their manager has become less accessible since downsizing. The ripple effects are worrying:
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30% anticipate feeling unsupported during times of disruption.
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22% expect confusion from unclear direction.
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56% say they’d only be “somewhat confident” about getting the information they need to do their jobs well.
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34% predict a loss of connection at work, while 30% expect diminished mentorship and career development.
Senior leaders, meanwhile, aren’t filling the gap: nearly 40% of employees say leadership fails to provide mentorship, and nearly half (47%) rate leadership as only “somewhat transparent.”
Tech Can Help, but Can’t Replace Humans
Firstup argues that technology can relieve some of the burden by automating updates, delivering role-specific communications, and measuring engagement at scale. But Schuh cautions that tech isn’t a replacement for human connection: “AI and technology won’t replace the leadership that great managers provide, but they can give managers the space to lead with empathy and impact.”
The Bigger Picture
The findings land in the middle of a larger debate: as companies go “leaner” post-layoffs, are they undermining long-term performance? Middle managers may have been labeled expendable, but Firstup’s data suggests they’re central to employee trust, development, and workplace cohesion.
If organizations keep asking fewer managers to do more without support, they risk creating a workforce that’s less informed, less engaged, and less loyal—hardly the productivity boost the layoffs were supposed to deliver.
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