Fewer managers after layoffs threaten trust & employee support

A new survey of workers who have experienced layoffs finds that the diminished presence of middle managers is leading to concerns about communication, growth, and employee engagement.

The Manager Impact Survey, commissioned by Firstup, involved 1,000 full-time, non-managerial employees in the United States whose organisations had undergone layoffs within the past year. The results indicate that direct managers, rather than senior leadership or technology solutions, continue to serve as the primary point of trust, guidance, and recognition for employees.

Communication gaps

According to the survey, more than half (52%) of workers identified their direct manager as their most trusted source for company updates. Only 10% said the same of senior leadership. This trust extends beyond communication of company news, with 53% of respondents stating that they turn to their manager first with work-related questions.

Additionally, the role of managers in translating company updates into actionable information is evident, as 86% of those surveyed rely on managers to help them understand what corporate changes mean for their particular roles.

The importance of frontline managers to employee wellbeing and performance is reflected in other findings: nearly two-thirds (63%) depend on their manager for support in navigating work challenges, while half (50%) look to managers for coaching and professional development. Recognition and appreciation is also seen as a manager's domain, with 75% relying on them for acknowledgment and 82% for clear task and process guidance.

Impact of layoffs

The survey reveals that layoffs and changes to organisational structure have made it harder for employees to access their managers, with 38% reporting that their manager has become less accessible since workforce reductions. The effects of this are tangible, as nearly one third (30%) of employees anticipate feeling less supported during times of disruption if managerial access continues to decline.

Other reported consequences include 22% who would feel overwhelmed by unclear direction, and 21% who expect to feel unrecognised for their contributions. More than half (56%) said they would be only "somewhat confident" in getting the information they need to perform their jobs effectively in such conditions. Additionally, 34% anticipate losing a sense of connection to their workplace, and nearly 30% foresee decreased access to mentorship and growth opportunities.

Leadership and support

Senior leadership was not seen as filling the gap left by shrinking middle management. Nearly 40% of respondents said top-level executives do not provide sufficient mentorship or career guidance, and 37% report feeling unheard and unsupported by senior leaders. Almost half (47%) rate their leadership as only somewhat transparent.

"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."

The survey shows that managers remain central to employee career progression, with 72% of workers stating they depend on their manager for career coaching and feedback.

Managerial workload and technology

The increased demands on remaining frontline managers are prompting concerns about sustainability. Schuh noted:

"We're asking fewer managers to do more, and that simply is not sustainable. 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."

The findings suggest that while AI and automation can assist with information delivery and measurement, the human aspects of management - empathy, coaching, and connection - are reliant on accessible and adequately supported managers.

The survey was undertaken online in July 2025 and focused exclusively on the experiences of full-time, non-managerial employees in organisations that had recently conducted layoffs, providing insight into the current climate for workplace communication and employee engagement.