I saw this happening in other telecom companies back in the 1990's. At that time they had a 1:3 to 1:5 manager/work ratio at every level. One director would be in the same room with three managers each of whom supervised one or two senior engineers who in turned supervised three or more line engineers (or it could be the help-desk manager and help-desk staff). The senior managers just really maintained spreadsheets containing the task plans of the engineers, printing them out to put in the in-tray of their director would would approve them and put them back in the managers in-tray, who would then hand them to the senior engineers. All of those management levels just got flattened.
Back in the 1990's, Wall Street called it "getting rid of the dead wood".