hr-insight

Can a Company Without an Org Chart or Reporting Structure Really Function?

From the mid-2020s, companies like Amazon, Google, and Citigroup began reducing middle management layers, a trend that accelerated in 2026 with layoffs at Meta (8,000), Cisco (4,000), and Block (4,000). In March 2026, Block CEO Jack Dorsey published an essay suggesting that middle management might not be permanently necessary, citing Zappos' holacracy and Valve's flat structure as direct reference points. However, Zappos and Buffer—both of which actually eliminated their org charts—eventually reintroduced managerial roles and 'natural hierarchies,' while even Valve has faced recurring criticism internally for 'hidden hierarchies.' Haier, often cited as a success story, did not eliminate hierarchy; rather, it redesigned management functions through market mechanisms such as profit-and-loss accountability and contracts. Gallup's latest 2026 data (showing a sharp decline in global engagement to 20% and manager engagement to 22%) demonstrates that the core of the problem is not the existence of managers, but their quality. It also shows that even the most radical redesign attempts in the AI era are ultimately reverting to the lessons left by past experiments: that the functions of coordination, evaluation, and development cannot be eliminated.