Humans are tribal. We need hierarchy, whether it's defined or not. We need to know where we fit among a collection of people.
At work, bureaucracy gets a bad rap because we like to cite the -bad- examples of it being executed. It's actually a very efficient way to explain someone's purpose, expectations, and tools to succeed.
Ripping it out is just taking a c-level mentality of "wanting to be the leader" and applying it to people who don't necessarily want/need/have the capacity for such a role.
As for de-layering, a person can really only properly handle 7 direct reports before things get dysfunctional. Delayering just means more people reporting to fewer managers. Expenses are saved, but dysfunction grows, along with opportunity cost.