Delayering is the process of removing layers of hierarchy between the highest and lowest levels in an organisation in order to boost operational efficiency, decrease the wage bill and remove red tape. Delayering typically removes middle managers, providing senior managers easier reach over the organisation as a whole.

Why is delayering used?

In simple terms, delayering is the process of removing red tape to make your organisation function better. It involves stripping out layers of management and hierarchy between the lowest and highest levels, effectively flattening your company structure to reduce your wage bill and improve efficiency.

How does delayering impact a business?

Delayering is likely to increase the profit of a business when, by removing one or more layers of the organisational hierarchy and reducing the number of managers, fixed costs are significantly reduced. ... There may also be too many managers in each layer, with each having low spans of control.