Someone I know who worked there said that after the sale to Ms they had 4 levels of managers between a developer and Ballmer. A year later it was 8 levels. Maybe he was exxagerating, but that was also adding to the problems
Depth of org in a company is logN(number of employees) where N is the number of reports a manager has. At Microsoft there's order of 100K full time employees and N is about 10, so depth is about 6. This seems fairly unremarkable to me, though obviously there are other ways to do it.