The whispers of change in corporate America have turned into roars. Across industries, middle management positions are evaporating, leaving behind a mix of confusion and opportunity. For the food and beverage sector, this transformation isn’t just a corporate reshuffle—it’s a test of leadership and vision.

The question for today’s executives: How do you adapt to this “Great Flattening” while keeping your company agile, your workforce inspired, and your brand flourishing? Let’s dive in.

The Great Flattening: What It Means for Food & Beverage

Corporate restructuring has become the new normal. In 2023, middle managers accounted for 32% of layoffs—a sharp rise from 20% in 2019 . While this trend cuts costs in the short term, it can also create gaps in leadership and operational efficiency.

For the food and beverage sector, this flattening poses unique challenges:

• Loss of Expertise: Middle managers often serve as the glue between strategy and execution. Without them, companies risk losing institutional knowledge.

• Overburdened Staff: Flattening often shifts managerial duties to frontline workers, increasing burnout and turnover.

• Missed Opportunities: Innovation suffers when fewer voices are involved in decision-making.

Yet, in every challenge lies opportunity. This is the moment to reimagine what leadership looks like in a flatter, faster industry.

The Case for “Hands-On Unicorns”

In today’s leaner corporate structures, there’s no room for redundancy. Companies need leaders who can strategize at the 30,000-foot level but aren’t afraid to roll up their sleeves. I call these leaders “hands-on unicorns.”

Here’s what defines them:

1. Strategic Vision Meets Tactical Execution: These leaders can set the course and handle the day-to-day. Think of them as both the architect and the builder.

2. Expert Communicators: They translate high-level goals into actionable tasks for teams.

3. Digitally Fluent: From analytics dashboards to social media campaigns, they know their way around modern tools.

For brands searching for these rare professionals, the recruitment process needs a reset. Stop searching for the mythical “perfect candidate” and focus on proven, adaptable talent with both managerial experience and technical skills.

How Flattening Impacts Consumer Packaged Goods (CPG) Brands

The food and beverage industry isn’t just about making products—it’s about telling stories. From the local farmer’s market to global supermarket chains, consumers are hungry for authenticity.

But with middle managers being cut, who’s telling these stories? Here’s the risk:

• Marketing Campaigns Lose Depth: Without mid-level marketing managers, campaigns can lack the nuance needed to resonate with diverse audiences.

• Social Media Gaps: Community engagement often falls to middle managers. A leaner team might struggle to stay authentic online.

• Brand Integrity at Risk: Without skilled leaders overseeing quality and consistency, even established brands risk alienating their base.

Solutions for Thriving in a Flat Structure

1. Invest in Cross-Training: A flatter organization requires versatile employees. Provide training that allows your team to step into multiple roles. For example, a marketing associate could learn the basics of operations, creating a workforce that’s agile and resilient.

2. Leverage Technology for Efficiency: Tools like AI-driven analytics and automation platforms can replace some of the administrative load once carried by middle managers. But don’t over-rely on technology—it should enhance human creativity, not replace it.

3. Champion Rugged Individualism: Build a culture that rewards initiative and self-reliance. Employees should feel empowered to take ownership of their roles without micromanagement.

4. Hire Strategically: When filling leadership gaps, prioritize candidates with a proven ability to operate independently and execute. This is where those “hands-on unicorns” shine.

5. Focus on Storytelling: Authenticity is your greatest asset. Share the “why” behind your brand—whether it’s sustainable sourcing, family traditions, or bold innovation. Your story connects you to your customers.

A Call to Action

The “Great Flattening” isn’t just about cost-cutting; it’s a litmus test for leadership. The food and beverage executives who thrive in this environment will embrace personal freedom, take bold risks, and trust their teams to deliver.

What’s the next step for your organization? Maybe it’s upskilling your staff or rethinking your hiring strategy. Or maybe it’s bringing in someone who knows how to lead from the trenches and the boardroom. Either way, the path forward starts now.

About Giovanni Gallucci

I’m an Ad-Age, Emmy, Shorty, Telly, and Webby award-winning social media strategist specializing in the food and beverage sector. Over the past two decades, I’ve worked with iconic brands like Topo Chico, Frito-Lay, and Costa Coffee to build stories that resonate and communities that thrive. From grassroots campaigns to digital-first strategies, I bring both hands-on expertise and a visionary approach to every project.