Managing software orgs is hard, and most orgs can't do it well. Using additional management methods, more managers, and more engineers can make the software org less efficient. Software production is weird. Efficiency of software orgs is extremely plastic. An effective 15 person team can outperform a 150 person team and this is normal. Very extreme compared to most fields employing such numbers. Software can be really important & high value. Value can be utterly disconnected from the cost of producing it.
I say "less efficient" purposely rather than "worse." It might actually make sense to go from an efficient 25 person team to an inefficient 500 person team. The additional cost of might be dwarfed by the benefits of marginally more higher output. That might be better economically (even socially), but less efficient.
If you're in one of these orgs, you will not be more happy though. Efficiency feels good. Inefficiency feels bad.