Management Consulting Services NAICS 541611

Oct 30, 2025 - Middle Management Shrinking in Corporate America

• Companies are significantly reducing middle-management layers, resulting in individual supervisors managing roughly three times as many employees as they did in 2017, according to consulting firm Gartner. This increase in span of control leaves managers with far less time for one-on-one coaching, mentoring, and career guidance. The trend has accelerated since the pandemic, with US public company middle-management headcounts declining by approximately 6% from their 2021 peak, and top executive positions dropping nearly 5%, per Live Data Technologies. These cuts create fewer promotion opportunities and less clarity about career paths for employees, making feedback and professional development harder to access. The resulting structure shifts more responsibility onto remaining managers while limiting direct oversight and support for staff. Overall, the thinning management layers are reshaping workplace dynamics, forcing both employees and leaders to adapt to heavier workloads, broader spans of control, and altered expectations for career advancement and mentorship.
• AI is fundamentally reshaping how consulting firms approach talent acquisition, moving away from traditional models that relied heavily on large cohorts of entry-level associates. Historically, firms hired dozens, sometimes hundreds, of junior employees to perform routine analytical and research tasks, expecting that only a small percentage would advance to managerial or partner roles. According to Harvard Business Review (HBR), AI tools are now automating many of these routine functions, significantly reducing the need for large entry-level teams. As a result, consulting firms are focusing on hiring candidates with strategic thinking, leadership potential, and the ability to manage client engagements. This shift also requires firms to redesign workflows, integrate AI technology effectively, and reconsider traditional pricing and staffing models. According to experts cited by HBR, firms that adapt quickly to these changes will build stronger leadership pipelines, optimize operational efficiency, and maintain a competitive edge in an AI-driven consulting landscape.

• The management consulting industry in 2025 faces both challenges and opportunities amid economic uncertainty, geopolitical tensions, and rapid technological change. Global conflicts and market volatility are pushing firms to focus on operational efficiency and staying power. At the same time, AI and automation are reshaping workflows, requiring consultants to adapt quickly to stay competitive. Opportunities are emerging in areas like digital transformation, supply chain optimization, and sustainability, where specialized expertise is in high demand. Data-driven insights, agile methodologies, and value-focused advisory services are increasingly critical for meeting client expectations. Firms that can combine adaptability, deep expertise, and the ability to deliver measurable results are best positioned to thrive. While external pressures and industry disruption create hurdles, consulting firms that embrace technology, specialize in high-demand areas, and prioritize delivering tangible client value will have a leg up on the competition.
• There are more Americans unemployed than there are job openings for the first time since the pandemic, according to the US Bureau of Labor Statistics. There were 7.1 million job openings in the US in the month of July and 7.2 million unemployed workers. Available private sector jobs continued a downward trend for the second straight month to 6.4 million. New hires for the month went up slightly to 5.3 million, while the number of people quitting their jobs was flat at 3.2 million. Experts say the numbers indicate that unemployed workers have stayed out of the job market longer than usual, and that the shift reflects a dip in job openings rather than more people being laid off. The country’s aging population and US immigration policies have also knocked labor force participation to its lowest level since 2022.