As middle management jobs shrink, workplace experts say executives may be underestimating just how crucial these roles are to their companies — especially in the age of AI. Middle managers made up one-third of all layoffs in 2023, a Bloomberg and Live Data Technologies analysis found. This year, 41% of employees say their companies trimmed down their management layers, according to organizational consulting firm Korn Ferry's Workforce 2025: Power Shifts report, which surveyed 15,000 professionals worldwide. The trend is expected to continue into 2026: One in five (20%) businesses are expected to use AI to flatten their organizational structure, slashing over half of current middle management positions, an October 2024 report from research and advisory firm Gartner found. The layoffs span from major public companies like Amazon and Google to smaller businesses in the U.S., particularly in industries like tech and retail. Some of these companies say they're rectifying pandemic-era over-hiring. Others say they've laid off middle managers as they seek faster, more efficient workflows, and still others cite downsizing due to economic pressures, according to a recent Harris Poll survey on behalf of staffing agency Express Employment Professionals. And while the timing may be coincidental, the tightening comes as some CEOs mandate using artificial intelligence to accomplish work tasks before requesting more headcount. "Middle managers are more important than ever," says Deborah Lovich, a C-suite advisor and senior partner at Boston Consulting Group who has counseled leaders on how to improve the employee experience for over 30 years. Amid higher inflation, tariffs and economic concerns, many companies are tightening their belts. Middle managers, who typically have higher salaries, can often be the first target in leaner times. Cutting back on middle managers can help businesses reduce costs, encourage more collaboration between frontline employees and senior executives, and increase a company's overall speed and efficiency, according to a 2020 report from management consulting firm McKinsey & Company. That doesn't mean middle management roles should be eliminated altogether or indiscriminately, says Megg Withinton, vice president of enterprise analytics at HR solutions company Insperity. Instead, she says, these professionals should be better equipped to do their jobs. A competent middle manager builds motivation and productivity for their team and plays a significant role in company culture, says Lovich. In contrast, ineffective middle managers — whether due to inexperience, poor job fit, vague guidance from their own bosses or another reason — can weaken performance and morale. And only 20% of employees say their managers exceed their expectations, according to a recent Insperity survey of 1,000 U.S. executives, managers and frontline employees. One potential solution, suggests Withinton: Companies could invest in management training and upskilling, rather than using layoffs as a short-term fix. But spending about $1,000 per employee to train and develop your talent may have better long-term outcomes, Withinton says, considering turnover costs and lost employee trust and morale — especially for companies that eventually rehire after layoffs anyway. Besides, effective management is about more than money, says Withinton. As organizations rethink their strategies and workflow to be more AI-forward, managers can help guide their teams to use the technology effectively, instead of fear it. Managers provide the most value when they're keeping their teams accountable and helping workers feel motivated and supported, says Lovich — not necessarily when they're handling administrative tasks like coordinating meetings or tracking employees. The tech can and should be used to augment managers' abilities to complete administrative tasks, but can't authentically congratulate an employee on a job well done or notice that they're a little down and not themselves on a given day, Lovich says. Manager training should emphasize skills like fostering interpersonal relationships, effective communication, decision making and accountability, conflict resolution and building trust within teams, according to Insperity performance consultant Chris Brennan. Organizations that use their managers to their full potential reap significant benefits, Insperity's survey found: Their employees are five times more likely to report a healthy workplace culture and four times more likely to understand and align with company goals. What's more, companies with high-performing managers tend to yield higher shareholder returns than their counterparts, according to a June 2023 report from McKinsey and Company. Those advantages will be especially important as organizations start to integrate artificial intelligence into their workflows, Withinton says. Still, a looming question remains: By helping facilitate the transition to AI, are today's managers positioning themselves to be increasingly obsolete tomorrow? Sign up for CNBC's new online course, How to Raise Financially Smart Kids. CNBC Select is editorially independent and may earn a commission from affiliate partners on links. Learn more about the world of CNBC Make It

Every time Thibault publishes a story, you'll get an alert straight to your inbox! By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider's Terms of Service and Privacy Policy. SoftBank said it will acquire digital infrastructure investor DigitalBridge for about $4 billion. The Japanese conglomerate said it is doubling down on building the data centers, connectivity, and power needed to support AI at a global scale. "As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure," said Masayoshi Son, chairman and CEO of SoftBank Group. DigitalBridge will continue to operate as a separately managed platform following the deal, led by CEO Marc Ganzi. The acquisition also comes as SoftBank reshapes its bets on AI. The company disclosed in November that it had sold nearly $6 billion worth of Nvidia stock. The DigitalBridge deal also aligns with SoftBank's growing focus on what it calls "physical AI," as the company ramps up investments in the real-world infrastructure — from data centers to robotics — needed to integrate AI into everyday life.

Lululemon Athletica's founder Chip Wilson said on Monday he had launched a proxy fight by nominating three independent directors to the company's board, just over two weeks after the apparel maker announced the exit of CEO Calvin McDonald without a clear successor. Lululemon shares have shed nearly half their value this year as the company struggles to find its footing with younger and affluent shoppers, while battling stiff competition from fast-growing newer rivals such as Alo Yoga and Vuori, as well as pressure from activist investor Elliott Management. The board installed Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as interim co-CEOs while they search for a permanent replacement. Reuters had reported that Elliott Management, which disclosed a $1 billion stake in the company earlier this month, had been working closely for months with former Ralph Lauren executive Jane Nielsen for a potential CEO role. When asked whether Wilson was teaming up with activist investor Elliott in pushing for the board change, a person familiar with Wilson's thinking said he was not working with any other investor. At the same time, Elliott's campaign for a new CEO would not interfere with his plans, the person added, asking not to be named. Wilson had spoken to Nielsen, but any CEO selected by the company before board changes would not have Wilson's support, the source said. "The recent CEO change announcement was the third total failure of board oversight, with no clear succession plan in place. Shareholders have no faith that this board can select and support the next CEO without input from a board with stronger product experience," Wilson said in a statement. Lululemon did not immediately respond to a Reuters request for comment. "Adding three new board members seems like something that Lululemon would be willing to do. It might keep Wilson from constantly attacking the board, at least. The nominees appear to be fine, although only one of the three (Maurer) has direct experience in Lululemon's industry," Morningstar analyst David Swartz said. Wilson likely did not ask for a board seat for himself as he owns a significant stake in Lululemon's competitor Amer Sports, Swartz added. The yogawear maker's founder had previously called for an urgent search for a CEO to replace McDonald, led by new, independent directors with a deep knowledge of the company to restore a "product-first" mindset at the company. This is not the first time Wilson has pushed for changes at Lululemon's board. After founding the apparel company in 1998, Wilson withdrew from daily operations in 2012 and resigned as chairman a year later following a recall of see-through yoga pants that led to the departures of top executives amid a public-relations storm. However, a proxy fight was averted after Wilson agreed to sell about half of his 27% stake to private-equity firm Advent International for $845 million in return for two additional director positions. Sign up for free newsletters and get more CNBC delivered to your inbox

Subscribe here to receive future editions in your inbox. While some market participants worried that the so-called Santa Claus rally wouldn't materialize this year, the major indexes all notched wins in last week's holiday-shortened trading period. As CNBC's Leslie Josephs reports, airlines including American, Delta, United, Southwest and JetBlue waived change fees last week for travelers flying in and out of several airports in the Northeast. President Donald Trump spent yesterday talking with Ukrainian and Russian leaders as he continued to push for a peace deal between the two countries. Trump welcomed Ukrainian President Volodymyr Zelenskyy to his Mar-a-Lago resort in Florida. Before beginning talks, Trump said that "we have the makings of a deal that is good for Ukraine" and "good for everybody." Afterward, Trump said "we're getting a lot closer" to an agreement. Earlier on Sunday, Trump said in a Truth Social post that he had a "good and very productive telephone call" with Russian President Vladimir Putin. Trump said he planned to call Putin again after finishing his meeting with Zelenskyy. CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning. Groq is calling Nvidia's acquisition of its top talent a "non-exclusive licensing agreement." Bernstein analyst Stacy Rasgon said in a report that the structure may be used to avoid antitrust concerns and "keep the fiction of competition alive." As CNBC's Ari Levy reports, Groq would be Nvidia's largest acquisition on record. But the world's most valuable company is instead choosing to pay for the startup's top talent and access to its technology through licensing — a popular strategy among major tech firms in recent years. For some on Wall Street, the agreement underscores Nvidia's ballooning size. "They're so big now that they can do a $20 billion deal on Christmas Eve with no press release and nobody bats an eye," Rasgon told CNBC's "Squawk on the Street" on Friday. Value was a hot topic among some restaurant chains this year as they tried to keep price-conscious consumers coming in their doors. Taco Bell followed suit by expanding its Luxe Cravings box offerings this year. As CNBC's Amelia Lucas reports, that strategy will likely stick around in 2026. The emphasis on value comes as data shows diners are more focused on costs after years of high inflation. But not all restaurant chains have jumped on the bandwagon: Fast-casual restaurants like Chipotle and Cava have tried to avoid discounting and instead zeroed in on quality. Here's what we're watching in this four-day trading week: CNBC Pro subscribers can see a calendar and rundown for the week here. — CNBC's Sean Conlon, Sarah Min, Leslie Josephs, Hugh Son, Holly Ellyatt, Ari Levy and Amelia Lucas contributed to this report. Sign up for free newsletters and get more CNBC delivered to your inbox

Every time Dan publishes a story, you'll get an alert straight to your inbox! By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider's Terms of Service and Privacy Policy. TikTok has unseated its social media rivals as the top spot for young people to get their news. Forty-three percent of young adults said they regularly get news from TikTok in 2025, compared to 41% for both YouTube and Facebook. Seventy-six percent of the cohort said they often or sometimes get news from social media, compared to 60% for news websites and 28% for email newsletters. Half of the young adults who responded to Pew's survey said they have some or a lot of trust in social media as a news source. TikTok has been rising quickly as a go-to source for news. In 2023, 32% of respondents named the video app as a place for regular news consumption. Watching news on TikTok does not necessarily mean tuning into videos from traditional outlets like The Washington Post or NBC News. A new crop of independent news influencers has emerged to report on current events, including creators like Philip DeFranco and Vitus "V" Spehar's @underthedesknews. Some professional news organizations, including NPR's "Planet Money," have similarly centered videos on individual creators who can help build trust with their audiences. Gen Z social-media users told Business Insider that they are drawn to news creators who can deliver information in a more authentic and relatable manner. Beyond news commentary, social media creators and podcasters have taken on a bigger role in news gathering in recent months. Many independent creators have applied for access to White House press briefings in 2025.

Japan's SoftBank on Monday said it has agreed to buy data center investment firm DigitalBridge for $4 billion as part of its artificial intelligence push. The deal, which has been unanimously approved by a special committee of DigitalBridge's board of directors, will see SoftBank acquire all the outstanding common stock of DigitalBridge for $16 per share in cash. This represents a 15% premium to DigitalBridge's closing share price on Dec. 26. The deal is expected to close in the second half of next year, according to a SoftBank statement. SoftBank CEO and Chairman Masayoshi Son said the acquisition "will strengthen the foundation for next-generation AI data centers" and advance the firm's vision to become a leading "Artificial Super Intelligence" platform provider. "As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure," Son said in a statement. The firm's share price had climbed as much as 50% after Bloomberg reported a deal could be imminent. The agreement between SoftBank and DigitalBridge comes amid a global boom for the infrastructure that underpins AI applications. "The buildout of AI infrastructure represents one of the most significant investment opportunities of our generation," DigitalBridge CEO Marc Ganzi said in a statement. SoftBank's "vision, capital strength, and global network will allow us to accelerate our mission with greater flexibility, invest with a longer-term horizon on behalf of our investors, and better serve the world's leading technology companies as they scale their AI ambitions," he added. SoftBank recently sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion to make room for its investment in OpenAI. DigitalBridge describes itself as "a unique digital infrastructure business," and had roughly $108 billion of assets under management as of the end of September, according to its website. Sign up for free newsletters and get more CNBC delivered to your inbox

LONDON — European stocks closed mixed on Monday, with defense stocks continuing to struggle amid a possible peace deal in Ukraine. The pan-European Stoxx 600 index stood little changed at close, having hit an intraday record high of 589.61 points earlier in the session but finishing the day at 589.35 points, a 0.11% gain. The U.K.'s FTSE index traded marginally lower, finished down 0.04%. European defense stocks dipped following weekend peace talks between U.S. President Donald Trump and Ukrainian counterpart Volodymyr Zelenskyy. Stocks fell in the morning and early afternoon but pared some losses in later trading. Shares of Leonardo fell 1.96% and Rheinmetall dropped around 1%, while Renk, Kongsberg, and Saab were also down at the close. The Stoxx Europe aerospace and defense index was 1.53% lower. While peace talks could lead to a setback for defense stocks, Sydbank analyst Jacob Pedersen told CNBC that "it will quickly be apparent that the investments needed in defense in Europe will continue and they will accelerate massively over the next years." "Definitely a positive potential for European equities if we get some kind of peace," Pedersen told CNBC's "Squawk Box Europe" on Monday. Silver climbed above $80 an ounce for the first time early Monday before pulling back. The precious metal was last seen trading at $71.55 an ounce. Gold dropped 1.6% to last trade at $4,355 an ounce, and copper fell 4.2% to $5.59 an ounce. Trading volumes could be lighter this week, given the ongoing Christmas holidays and with regional markets set to close on Thursday for New Year's Day. Oil prices rose as investors weighed the prospects of a deal to end the war in Ukraine, though the prospect of a deal before the year's out is fading after Trump and Zelenskyy said on Sunday that progress had been made during talks to end the war but that "one or two very thorny issues" remained. Ukraine and Russia remain far apart when it comes to territorial concessions demanded by Russia and security guarantees coveted by Ukraine. Speaking to reporters following talks in Florida on Sunday, Zelenskyy said they had come to an agreement on around "90%" of a 20-point peace plan and that the leaders had fully agreed on security guarantees for Ukraine. There are no major European earnings or data releases on Monday. Sign up for free newsletters and get more CNBC delivered to your inbox

The ripple effects from Europe's growing appetite for raw materials extend all the way to Sweden's far north. Thousands of residents and buildings are being uprooted in Kiruna, a city that lies 145 kilometers (90 miles) north of the Arctic Circle. Kiruna is physically on the move because of ground subsidence from the expansion of a sprawling underground iron ore mine. A new home is being created about 3 kilometers east of the old town as part of a multi-decade process that's expected to be completed by 2035. "It's a place that would seem exotic to so many and, in a way, I guess it is, but also it is a small town like so many others — struggling with what they are struggling with and challenged by being so dependent on one company," Jennie Sjöholm, senior lecturer at Sweden's University of Gothenburg, told CNBC by video call. Established 125 years ago as a city for the iron ore mining operations of state-owned firm LKAB, Kiruna is a small community that serves as both a significant European space hub and home to the world's largest underground iron ore mine. LKAB is small in global terms but a highly significant regional player, accounting for 80% of all iron ore mined in the European Union. Alongside its iron ore operations, which are integral to the steel-making process, LKAB recently identified one of Europe's largest known deposits of rare earths, further strengthening its position in the extraction of essential materials for the green transition. There are several obstacles to the successful relocation of Kiruna, with players across the spectrum raising political, economic and environmental concerns. Others have also flagged concerns about the relationship between resource extraction and community sustainability, particularly regarding the potential impact on indigenous Sami reindeer herding and culture. The city's relocation, which was first planned in 2004, received international attention in August 2025 during the spectacular move of its iconic Kiruna Church. In a feat of engineering, the 113-year-old timber building was moved in its entirety by specialized trailers over a period of two days. At around the same time, however, LKAB also announced the expansion of its iron ore mine would require the relocation of an additional 6,000 people and 2,700 homes. Niklas Johansson, senior vice president of public affairs and external relations at LKAB, told CNBC that those being asked to relocate were being offered the market value of their property, plus an additional 25%, or the construction of a new home. Around 90% have elected to take a new house, Johansson said. "The problem at the moment is that the local municipality has very little land that they own [or] that they can make, from an administrative point of view, buildable," Johansson said. Mats Taaveniku, chairman of the municipal council in Kiruna, described the city's relocation as a "huge project," that could yield major opportunities for European citizens for decades to come. A successful outcome, he added, hinges in part on greater financial and political support from both the Swedish government and the European Union. "We have what we can call a big fight between the municipality and LKAB, and the municipality and our own government," Taaveniku told CNBC by video call. It's not enough to make a decision that we have critical and strategic minerals. They have to support us with political statements and money, of course," he added. The EU, for its part, has recognized LKAB's new rare earths deposit as strategically important under its Critical Raw Materials Act, a policy that aims for domestic production to satisfy 40% of the region's annual demand by 2030. Asked how Kiruna residents have reacted to the relocation effort, Taaveniku said: "Some of the citizens are sad because they will lose a lot of memories. They have grown up in a house for two or maybe three generations, so this is sad." "Kiruna is built on the minerals, so every resident in Kiruna knows that we have to move from our homes sooner or later because we are dependent on this mining industry." For those on the move, one aspect that has raised concerns is that Kiruna's new city may be up to 10 degrees Celsius colder in the winter. A study by the University of Gothenburg found that Kiruna's new city center is laid out in a grid pattern in an area where cold air collects, with tall buildings and narrow streets, meaning that the low sun will likely have difficulty reaching the ground for many months of the year. It is rarely -35 [degrees Celsius] but it could be that cold for a period of time in mid-winter and it's a very big difference between -15, which is not uncommon, and -25," Sjöholm said. "It's already a long winter season and if it's cold, human comfort decreases but also things get more fragile, so to speak," she added. Sign up for free newsletters and get more CNBC delivered to your inbox

South Korean online retail giant Coupang said it will offer 1.69 trillion South Korean won ($1.17 billion) in compensation to 34 million users affected by a massive data breach disclosed last month. The company said in a statement Monday local time that it planned to provide customers with purchase vouchers totaling 50,000 won for various Coupang services. Former customers who closed their Coupang accounts following the data breach are also eligible to receive the vouchers. Coupang said users can check their eligibility for the vouchers starting Jan. 15, according to a Google translation of the statement in Korean. Harold Rogers, interim CEO for Coupang Corp., described the move as a "responsible measure for our customers," and said the company would "fulfill its responsibilities to the end." "I once again deeply apologize to our customers," he said in the statement. Rogers' apology came a day after Coupang founder Kim Bom also apologized, saying that he was "devastated" by the disappointment people have experienced. The data breach, which was revealed on Nov. 18, led to the resignation of CEO Park Dae-jun earlier this month. The U.S.-based chairman acknowledged his apology was "overdue," explaining that he initially believed it was best to communicate publicly and apologize only after all the facts were confirmed. "In retrospect, this was a poor judgment. While Coupang worked tirelessly to resolve the situation, I should have expressed my deepest regrets and sincere apologies from the beginning. My heart has been heavy ever since I first learned of the data breach," Kim said. He also said the customer information stored on the suspect's computer was limited to 3,000 records and that it was not distributed or sold externally. Sign up for free newsletters and get more CNBC delivered to your inbox

Every time Aditi publishes a story, you'll get an alert straight to your inbox! By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider's Terms of Service and Privacy Policy. The duo, both 31, met in 2018 and became inseparable while working at GuavaPass, a fitness app. Two years later, during the pandemic, Chng was laid off from her marketing job. The duo reunited to launch an athleisure brand, then called Butter, despite having no experience in fashion or entrepreneurship. "At that point, we had nothing to lose," Yiong said. They started with online sales, and in October this year, they opened their first retail store in Singapore's upscale ION Orchard mall, in the heart of the city's luxury shopping district. Building a brand during the pandemic in an already saturated market and for a conservative audience was not easy. Exercise and sports have always been a big part of the founders' lives. Chng was part of a national team representing Singapore at the 2011 Touch Rugby World Cup and has also dabbled in cheerleading, pilates, yoga, and HIIT. When Chng was laid off from ClassPass in 2020, they decided to go all in on an athleisure clothing line, which started off with the name "Butter." They invested 20,000 Singapore dollars in 2020 into the brand. They launched in October that year with just two products in two colors: a longline sports bra and a pair of leggings. COVID lockdowns that pushed everyone online helped them gain visibility. About 500 people joined an online workout they hosted in March 2021. Afterward, they changed the brand's name to Cheak. Launching an athleisure brand in Singapore came with a unique set of challenges. Women in Singapore and Southeast Asia place a high value on modesty and require padding in the bust, the duo said. "A lot of overseas brands don't have padding. One of the most commonly asked questions we get is, 'Does it have padding?'" "Overseas brands don't double line their lighter colors because I think the women are a bit more comfortable with a slight sheerness, but in Singapore, that's not acceptable," she said. "But when you double-line a garment, it becomes very thick. So, we spent about a year changing the fabric and reducing its thickness so that when we double-lined it, it would still be comfortable," Chng added. Designing clothes for a customer base that likes to play it safe requires a good deal of restraint, the founders said. "So we take that idea, and tweak it to what will work for our audience." Singapore is becoming a competitive space for athleisure brands. Alo Yoga, the athleisure brand worn by Kendall Jenner and Hailey Bieber, opened its first store in the city's Marina Bay Sands mall in September. In ION Orchard, the mall where Cheak is located, shoppers can also find Lululemon, Cotton On Body, and Adidas. To stand out, Cheak focuses on making clothes for Asian women — and that doesn't just mean making them more petite. "The bust shape is different, our waists are smaller, our hips are slightly wider, and the femur is also a little bit shorter," Yiong said. Sizing is different for Asian women, too, she added. She also said that international brands do not suitably cater to the hot and humid climate that Southeast Asia is known for. "Fresh international brands, let's say Alo, for example, they come in bringing winter season clothes," she said. "There's no winter; we only have one season, so the fabric needs to be cooling." Cheak's prices are slightly lower than those of its foreign competitors. On the flipside, at work, they don't talk about other things, helping to distinguish their "work personality and friend personality." But work and life inevitably collide, like when they go on holiday together and fire up their laptops to solve a crisis. But that doesn't mean it's less stressful than a corporate job.