Middle Managers Eroded as AI-Driven "Player Coaches" and "Org Leads" Gain Prominence at Meta and Block

Companies Redefine Roles as AI Takes Over Middle Management

Middle managers have been the target of layoffs at most companies for years. Two leading firms, Meta and Block, are now on the cusp of redefining these roles as they pass on the work to AI. Last month, Meta's Reality Labs unit employees were given new job titles, according to a report by Business Insider. The employees are now categorized as either "AI builder," "pod lead," or "org lead," as the company aims to become "AI-native."

Block, the payments company founded by Jack Dorsey, is also doing away with the word "manager" from its hierarchy. The company is now adopting a "player-coach" model, where employees build together with the team, and "individual contributors" use AI tools to make their own decisions, rather than waiting for instructions from a manager. This approach is a significant departure from traditional management structures, where middle managers played a crucial role in overseeing teams and making key decisions.

The Trend of Eliminating Middle Managerial Ranks

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For years, businesses have reorganized themselves around disruptive technologies. The latest trend is the use of AI, with companies looking to dissolve dedicated middle manager levels in an effort to increase speed and efficiency. According to job site Indeed, companies in 2025 advertised 12.3% fewer middle-manager jobs than in 2024. The overall listings also declined during this period.

Meta and Block's rebranding efforts are part of this larger trend. However, their approach is less dramatic, as some of the new roles still require human oversight and support. The ultimate goal of these companies is to eliminate all managerial layers and create a flatter organizational structure.

The Role of AI in Flattening Hierarchies

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To achieve this goal, companies like Meta and Block consider AI as a key driver. For example, Meta's org leads of its Reality Labs unit handle reviews and promotions with support from AI systems. According to a blog post by Jack Dorsey and Sequoia partner Roelof Botha, the future of organizations lies in a hierarchy-less structure, where AI coordinates tasks and eliminates the need for a permanent middle management layer.

Jack Dorsey has reiterated his vision of a flat organizational structure in a podcast published on Thursday. He aims to cut down the number of layers between Block's 6,000 employees and himself this year to two or three. While there are currently about five layers, Dorsey's ultimate goal is to have no layers at all, with everyone in the company reporting directly to him.