Nvidia’s leadership change has put a question about its organisation in sharp focus: did a company built around a powerful CEO do enough to prepare for his departure? Fortune’s account says Jensen Huang had about 36 direct reports and that Nvidia’s flat structure may have left no obvious successor ready to take over.
NVIDIA Watch analysis
What happened
Fortune describes a company where employees were encouraged to share ideas directly with senior leadership, while Huang reportedly eschewed one-to-one meetings. Nvidia’s finance chief, Colette Kress, is serving as interim CEO as the board searches for a permanent successor. Reuters and The Independent also report Huang’s departure and Kress’s interim appointment.
The issue is bigger than the number of boxes on an organisation chart. Fortune cites leadership experts who argue that fewer management layers can mean fewer chances for potential executives to gain experience, receive coaching and take on broader responsibilities. It also notes Gallup research finding an average of 12.1 people reporting to a US manager in 2025, almost 50 per cent more than in 2013.
Why it matters
Nvidia is central to the AI-computing industry, so questions about whether it can manage a leadership handover matter beyond its boardroom. The company’s ability to keep executing while it finds a permanent chief will be watched by investors, customers and partners.
A flat structure can speed up decisions and give employees more direct access to leadership. The trade-off, as Fortune’s reporting highlights, is that fewer layers may also mean fewer people are being prepared to step into senior roles. Fast lines of communication are useful; a succession plan that depends on one person being available is a less enviable efficiency gain.
Our read
This is a useful argument about the cost of a fashionable management structure, not proof that flat organisations inevitably fail at succession. Nvidia’s next appointment will show how much depth the board can draw on, and whether the company can make a transition without losing momentum. For other technology firms, the practical lesson is simple: fewer managers do not remove the need to develop future leaders.
What to watch
- Whether Nvidia appoints a permanent CEO internally or looks outside the company.
- How the board describes its succession planning and the leadership bench.
- Whether the handover affects Nvidia’s strategy or its relationships across the AI industry.
Discussion spark: Do flatter organisations genuinely make better decisions, or do they risk leaving companies without a prepared successor when a powerful CEO departs?
Sources and evidence
- Source update (12 November 2026, 16:36 UTC)
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