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Uber streamlines hierarchy by dismantling micro-teams

Uber is eliminating nearly half of its "micro-teams"—units with only one or two direct reports—as part of a broader corporate restructuring. CEO Dara Khosrowshahi announced the move alongside layoffs affecting 10% of staff, aiming to flatten the organization and pivot managers toward active production rather than mere supervision.

Uber streamlines hierarchy by dismantling micro-teams

The tech sector is currently grappling with a shift away from bloated management layers. At Uber, the goal is to reduce the number of employees separated from the CEO by seven or more levels by 20%. This strategy mirrors a wider trend where companies like Coinbase and Meta are re-evaluating the necessity of middle management, often favoring "player-coach" roles where supervisors contribute directly to technical output.

Industry experts suggest that AI is a primary driver of this transition. By automating routine oversight, managers can now oversee larger groups—a trend reflected in Gallup data showing the average manager's span of control climbing from 10.9 reports in 2024 to 12.1 in 2025. Fred Voccola, CEO of Simpro Group, advocates for an even more aggressive shift, noting that his firm has moved from an eight-to-one ratio to 17-to-one. He argues that leaders must adopt "hands-dirty" roles, such as CMOs writing copy or CTOs debating software architecture.

However, the move toward leaner structures carries significant risks. Critics warn that as managers are stretched across larger teams, essential mentorship and career development often suffer. Paddy Lambros, CEO of Dex, observes that relationships between managers and their teams are becoming increasingly transactional, creating a "sink or swim" environment for employees. While some specialized initiatives may still require the agility of a small, multidisciplinary team, the consensus among many executives is that the era of the isolated, two-person management silo is rapidly closing in favor of broader, more direct lines of communication.

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