Shrinking Middle Management Layer Puts Pressure on Workplace Communication and Engagement

New Firstup survey highlights critical role of frontline managers
amid layoffs and leaner leadership structures

SAN FRANCISCO, Aug. 27, 2025 /PRNewswire/ -- Firstup, the pioneer of the intelligent communication platform for the workforce, today released the results of its Manager Impact Survey, which uncovers how recent reductions in the middle management layer create communication gaps and threaten the employee experience and organizational productivity. The findings underscore the vital role direct managers play in communication, mentorship, and coaching, and what is at stake when they are spread too thin.

Firstup surveyed 1,000 U.S.-based, full-time non-managerial employees whose organizations experienced layoffs in the past year. The survey results reveal a dependence on direct managers as the primary source of company information, clarity, and human-centric support.

Top findings include:

• Managers are the most trusted source of information. More than half (52%) say their direct manager is their most trusted source for company updates, while only 10% say the same of senior leadership.
• Employees rely on managers for more than just updates. 53% turn to their manager first with work-related questions, and a striking 86% rely on them to translate company updates into what those changes mean for their individual role.
• Managers are essential to employee growth and well-being. Nearly two-thirds of employees (63%) rely on their manager for support navigating work challenges, and half (50%) turn to them for coaching and professional development.
• Employees depend on managers for meaningful workplace experiences. Three-quarters (75%) rely on their manager for recognition and appreciation, and 82% for clear task and process guidance.
• Career growth is manager-dependent. A majority of employees (72%) rely on their manager for career coaching and feedback.

"Managers are critical for relaying information, as well as translating organizational priorities into action, clarity, and connection for their direct reports," said Bill Schuh, CEO of Firstup. "As companies adopt leaner organizational models and reduce middle management layers, they risk losing the vital link between leadership and the rest of the workforce, jeopardizing communication, trust, and employee engagement–all of which are necessary to deliver and sustain high performance."

In today's workplace, frontline managers are left to bridge widening communication and execution gaps often without the resources or support needed to keep up:

• Managers are being stretched too thin. More than one-third (38%) of employees report their manager has become less accessible since layoffs.
  
  
• Employees anticipate negative consequences as their managers become less available.
  • Feeling unsupported: Nearly one-third (30%) say they'd feel less supported during times of change or disruption.
  • Lack of direction and recognition: 22% would feel overwhelmed by unclear direction, and 21% would feel unseen or unrecognized for their contributions.
  • Information gaps: More than half (56%) would only be "somewhat confident" in getting the information they need to do their job well.
  • Weakened connection and growth: 34% anticipate losing a sense of connection, and nearly 30% expect decreased or eliminated access to mentorship and career development opportunities.
• Senior leadership isn't filling the gap. Nearly 40% of employees say senior leadership fails to provide mentorship or career guidance, 37% feel unheard and unsupported, and 47% rate leadership as only somewhat transparent.

"We're asking fewer managers to do more, and that simply is not sustainable," added Schuh. "AI and technology won't replace the human connection and leadership that great managers provide, but they can address the communication and engagement gaps that have arisen. With the right tools, organizations can automate updates, deliver critical role-specific information, measure workforce engagement on key topics and initiatives, and give managers the space to lead with empathy and impact."

To review the full survey results, read: Vanishing middle management & the communication gaps they leave behind.

Methodology:
Firstup surveyed 1,000 U.S.-based, full-time, non-managerial workers whose organizations had experienced layoffs within the last 12 months. The survey was conducted in July 2025 via Pollfish, an online survey platform.

About Firstup
Firstup's mission is to improve the employee experience at every moment that matters. As the leading intelligent communication platform, Firstup connects organizations with their entire workforce—from desk workers to the frontline —through personalized communications that drive action and outcomes. With AI-powered orchestration, Firstup enables what was previously impossible: delivering real-time, contextualized communications at scale, tailored to each employee's unique role and needs at the exact moment of relevance. Trusted by global brands including Boeing, Colgate-Palmolive, Dow, Providence, Tesco, and Toyota, Firstup empowers millions of employees to be more informed, engaged, and productive. Learn more at firstup.io.

SOURCE Firstup