Delayering is the removal of layers in a business' hierarchy. This can lead to wider span of control for managers which can boost their motivation levels, if they are motivated by level of responsibility and autonomy, a feature of Herzberg's motivational theory. This will lead to higher results and productivity which in turn boosts output and profit levels.
However, a consequence of delayering can mean commination is worsened due to each manager having more subordinates to manage. This can disrupt efficiency and decrease productivity levels so therefore increase costs and lower profits are generated as a result.