I&#x27;m not sure why this seems surprising at all. In fact, it seems like exactly the intended result: the company is getting rid of managers. That doesn&#x27;t say anything about how employees are faring in the new model.<p>This is like posting an article asking &quot;why are so few people smoking in restaurants?&quot; right after a no smoking rule was introduced in restaurants.<p>Unfortunately, I do think they will run into some adverse selection issues. The best employees are also the ones who can easily find a new replacement job and collect a free 3-month exit bonus. Not to mention that many top performers probably rose into management and are facing the possibility of a pay cut.