Comment

Comment by throwawaypa123

the 6 layers isn't really true, in part due to line managers can manage 15-30 people. If everyone is doing the same job that is fairly rote a single line manager can handle a lot of people, reducing layers. Additional CEOs tend to have a lot of direct reports.

Sample Example

(0 Layer) CEO --> 10 Direct reports is typical for large publicly traded companies.

(1 Layer) C-Level --> 6-8 (10,000 / 8 --> 1,250)

(2 Layer) SVP / VP -- > 6-8 (1250 / 6 --> ~200)

(3 Layer) Middle management (200/ 6 --> ~30)

(4 Layer) Line managers (1-25)

Discussion

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