I know agile and scrum and so on carry a lot of baggage these days but what you're describing is Less Agile. You flatten the org back out, create product teams that pull from a single common backlog and developers interface directly with their customers. That's not even the most controversial part! You also do away with pay tied to individual goals: everyone succeeds or fails together and are paid the same way.
I liked this until everyone got paid the same. That's the fastest way to lose all of the people who can get more elsewhere. And it's not going to be the laggards who jump ship...
https://less.works/less/framework/index