Corporate Executives Are Cutting Back: Why C-Suites Are Shrinking Amidst Flattening Organizations
In an effort to increase agility and streamline operations, companies across various industries are downsizing their corporate suites. The trend is evident in the largest companies globally, including those listed on Fortune's 500 list. According to data from The Official Board, the average number of senior executives (excluding CEOs) decreased by 9% between 2022 and 2025.
The decision to reduce the size of C-suite roles has been driven by a combination of factors, including the desire for greater agility, cost-cutting measures, and an emphasis on strategic focus. While some companies have chosen to eliminate certain senior positions altogether, others are reorganizing their structures to create more intermediary roles that oversee multiple functional groups.
For instance, American Express has appointed Denise Pickett as president of Enterprise Shared Services, overseeing various functions such as real estate, supply management, and security. Meanwhile, Microsoft CEO Satya Nadella has appointed Carolina Dybeck Happe as COO, who manages multiple groups including the Digital IT team and Microsoft Business Operations.
The trend is also reflected in the decreasing number of C-suite executives with specialist roles, such as chief marketing officers (CMOs). A 13% decline in the number of Global Fortune 500 companies with CMOs has been observed between 2022 and 2025. Companies like UPS and Johnson & Johnson have eliminated this role in recent years.
In contrast, some CEOs, including those at Nvidia and Meta, believe that a larger C-suite is necessary to keep information fluid and empower employees across the organization. CEO Andy Jassy of Amazon has stated that his direct reports should outnumber anyone in the organization, allowing for greater management transparency.
The shrinking C-suite trend highlights the evolving nature of corporate leadership in today's fast-paced market. As CEOs face increasingly complex challenges, they must balance strategic focus with operational demands. With fewer senior executives to manage, CEOs can devote more time to setting and executing strategy, rather than managing by delegation.
According to a study by Deloitte, the number of skills required from C-suite executives has increased significantly over the past few years. The average number of requisite skills listed in CFO postings has risen by 19%, while COOs and CHROs require an additional 25% more skills.
Ultimately, the shrinking C-suite trend reflects a desire for greater agility, efficiency, and strategic focus in corporate leadership. As companies navigate an increasingly competitive landscape, CEOs must be willing to adapt their management structures and priorities to drive success.
In an effort to increase agility and streamline operations, companies across various industries are downsizing their corporate suites. The trend is evident in the largest companies globally, including those listed on Fortune's 500 list. According to data from The Official Board, the average number of senior executives (excluding CEOs) decreased by 9% between 2022 and 2025.
The decision to reduce the size of C-suite roles has been driven by a combination of factors, including the desire for greater agility, cost-cutting measures, and an emphasis on strategic focus. While some companies have chosen to eliminate certain senior positions altogether, others are reorganizing their structures to create more intermediary roles that oversee multiple functional groups.
For instance, American Express has appointed Denise Pickett as president of Enterprise Shared Services, overseeing various functions such as real estate, supply management, and security. Meanwhile, Microsoft CEO Satya Nadella has appointed Carolina Dybeck Happe as COO, who manages multiple groups including the Digital IT team and Microsoft Business Operations.
The trend is also reflected in the decreasing number of C-suite executives with specialist roles, such as chief marketing officers (CMOs). A 13% decline in the number of Global Fortune 500 companies with CMOs has been observed between 2022 and 2025. Companies like UPS and Johnson & Johnson have eliminated this role in recent years.
In contrast, some CEOs, including those at Nvidia and Meta, believe that a larger C-suite is necessary to keep information fluid and empower employees across the organization. CEO Andy Jassy of Amazon has stated that his direct reports should outnumber anyone in the organization, allowing for greater management transparency.
The shrinking C-suite trend highlights the evolving nature of corporate leadership in today's fast-paced market. As CEOs face increasingly complex challenges, they must balance strategic focus with operational demands. With fewer senior executives to manage, CEOs can devote more time to setting and executing strategy, rather than managing by delegation.
According to a study by Deloitte, the number of skills required from C-suite executives has increased significantly over the past few years. The average number of requisite skills listed in CFO postings has risen by 19%, while COOs and CHROs require an additional 25% more skills.
Ultimately, the shrinking C-suite trend reflects a desire for greater agility, efficiency, and strategic focus in corporate leadership. As companies navigate an increasingly competitive landscape, CEOs must be willing to adapt their management structures and priorities to drive success.