Call for examples: Is flatter always better?

Jeff Stamps and I are writing a piece about organization design. In that pursuit, we're looking for what the editor calls "vivid illustration" of situations in which flattening organizations - haphazard removal of layers - has led to problems. Have you been in an enterprise that has done wholesale removal of management levels? Have you had a conversation with someone who has? Are you the exec who's made the decision to delayer an organization? We'd love to hear your story and, as always, will credit respondents or preserve anonymity as desired. Please comment here (or email me if you're not the commenting type: jessica[dot]lipnack[at]netage.com).