Middle Management: Jamba Juice Exec Defends Layer

Former Jamba Juice CEO James D. White is defending the role of middle management in corporate America. Speaking on the Yahoo Finance 'Opening Bid' podcast, White argued that this layer is crucial for driving company culture, which in turn drives bottom-line growth.

He explained that since most workers report to middle managers, these leaders must have the right tools and buy into the company mission. White's view contrasts with the current trend of the 'Great Flattening,' where companies like Microsoft, Meta, Amazon, Intel, and Google have slashed middle management head count for efficiency.

Retail giants like Walmart have also followed this trend. OnlyFans CEO Keily Blair represents the opposing view, stating her company generates $7 billion in annual revenue with only 42 employees and no middle management.

James D. White believes companies should not lose sight of the fact that humans and company culture drive bottom-line growth. He stated that middle managers are crucial for driving a good company culture.

White explained the mechanics of this relationship during his podcast appearance. "It's really hard to drive culture into an organization if you're not focused on the middle management of the organization," he told host Brian Sozzi.

The reason for this difficulty lies in reporting structures. White noted that most workers report to middle management. He elaborated on the consequences of neglecting this layer:

• If that part of the organization doesn't have the tools
• If they haven't bought into the mission and vision
• If they're not being appropriately rewarded or invested in

White concluded that without addressing these issues, "you don't have the best chance of getting that message into the heart of the organization."

White's advice stands in stark contrast to the prevailing trend in corporate America. The current era is often called the Great Flattening, where companies slash middle management for efficiency and cost-cutting.

Major technology companies have led this charge in recent years. The following firms have all reduced their middle management head count:

• Microsoft
• Meta
• Amazon
• Intel
• Google

This trend is not limited to Big Tech. Retail giants like Walmart have also followed suit, removing layers of management to streamline operations.

The opposing viewpoint to White's stance is exemplified by Keily Blair, the CEO of OnlyFans. In November, Blair highlighted her company's lean structure as a key to success.

Blair stated that OnlyFans generates $7 billion in annual revenue with a staff count of only 42. She attributed this success to a specific hiring strategy. The company thrives from having only "incredibly senior talent" and "incredibly hungry junior talent."

Blair explicitly rejected the middle management layer. "We do not have that sort of squidgy layer of middle management in the middle, because nobody's ever had a really good middle manager in my experience," Blair said. She made these comments during an interview at the Web Summit technology conference in Lisbon.

James D. White brings significant experience to this debate. He served as the CEO of Jamba Juice from 2008 to 2016.

His career includes executive roles at several major corporations. White has held positions at:

• Gillette
• Coca-Cola
• Nestlé Purina

Currently, White sits on the board of directors for several consumer companies. These include Cava Group and Simply Good Foods.