You can't be a manager without anyone to manage.

There's a lot of perverse interests and incentives at play.

Manager gigs at FAANG are pretty rough right now in my network, you can't be a manager when the higher-ups notice your group isn't a big revenue generator and so doesn't justify new hires and bigger org charts, and cutting the middlemen is the easiest way to juice the ROI numbers. If the ICs that now have 1/3 the managerial structure and have to wear more hats don't turn things around, oh well, it's not a critical area anyway, just nuke it.

You can be an exec with 10-20% fewer random products/departments in your company, and maybe 40% fewer middle managers in the rest of them. You might even get a nice bonus for cutting all that cost! Bonuses for growth, bonuses for "efficiency" when the macro vibe shifts. Trim sails and carry on.