I've seen this on the org I work, the whole 'engineer manager' layer was removed and replaced with wishful thinking (love that phrase!). The engineer managers had a good idea of how to manage teams and were doing team/tech lead work and coaching the team/tech leads, which didn't have much experience (mostly senior devs who didn't want to code any more).

This org in particular missed, in my eyes, where to cut. There is a number of engineers who cannot do much more than copy/paste code and the org has no wish to train them. Unfortunately, the org thinks that going wide (lots of teams, lots of people) is a good way to scale.