People hire because they want large teams and people to lord over. It has nothing to do with the business, you just need a business model that spins off enough money to cover the empire building. Look at Google, all of their revenue comes from ads but they have a huge team of people who aren't working on that but are supported by the ad business.
Most businesses become bloated like this because the kind of people who become managers have been waiting their whole lives to build the biggest team possible.
Most businesses become bloated like this because the kind of people who become managers have been waiting their whole lives to build the biggest team possible.