This is just another example of the “delayering” that’s been going on in all organizations (except many government organizations), since the beginning of the “computer revolution”. Middle management was primarily involved in preparing reports to send up the food chain, and passing on instructions from above. Today’s computerized “management information” systems collect the data directly from the front line workers, and automatically prepare the reports senior management requires. No middle-management layers needed. Similarly, these systems are able to track employee performance — eliminating the need for “walking bosses”, or other supervisors.
The supervisor level makes or breaks any organization. Here’s hoping they get rid of the jerks and keep the good ones.