OK, here's one reason: Our newsroom has
Six full-time reporters (and one to three freelancers)
One full-time intern
One part-time reporter (works from home)
Two news clerks
Three sports guys (one editor, two copy editor/writers)
Two full-time photographers (and a bunch of freelancers)
Four copy editors (one design editor, two copy editors and a Web editor/copy editor)
One editorial page editor
One city editor (me!)
One editor (the boss)
I supervise the seven reporters, the intern and the freelancer(s), and if the editor, to whom I directly report, is away, I'm the acting editor.
At a larger paper, the editor would be separated from the city editor by at least a managing editor, and possibly some assistant managing editors. I understand the rationale behind having multiple layers of management between the general and the enlisted personnel, but as you probably know from your workplace, the more intermediate people are, the worse your workplace is for a) intraoffice politics; and b) actually getting work done.
Also, all those extra layers are expensive, and don't actually result in anything showing up in the paper. The more I do my job, the more sure I am I prefer the way we operate.
For what it's worth.