It's just my opinion. If someone thinks otherwise, I would like to hear the arguments.
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We wouldn't feel if all middle management was cut.
So your solution is to have one manager with 40 employees directly under them? There is definitely opportunity to trim but when someone is ignorant enough to throw out a number like 50% it just tells me they have no business sense and are likely looking from the bottom up.
Take a close look at the org chart in the employee directory and count how many people are between a front line employee and the top brass. Some lines of business have 7+ management levels or more. These are fluff managerial jobs that add little value to the bottom line. My personal experience was that many middle managers were far more interested in self-promotion than actually running the operations of the enterprise.
Pretty sure we wouldn't feel it if you were cut...that is if you were actually an employee.