It’s reached ridiculous proportions in some companies I have worked for. I have seen transversal project managers and delivery leads in charge of up to 80 persons sometimes with an intermediate level of management actually reporting to them but not directly attached to them be paid as IC.
It gets even more funny because some positions in said companies doing a lot less management but occupied by people who suck up a lot are actually considered managerial.
Most modern big companies are completely f* up. The only reason we don’t see more disruption is regulatory capture.