They looked at their C-level executives and said: hey, they don't do anything anyway, why bother.
Which is not all surprising given the business the company was in. When most of the employees are working at customer sites doing customers' bidding, the company structure isn't doing much. I don't know the details of how this particular Swedish company, but many consultancies here operate as little more than recruiting agencies. They hire and fire based on customer needs. They provide no internal training. The only people who come into the office on a regular basis are those that seek customers and those that recruit employees to meet that demand. With a total head count of forty, there might be only three or four people who truly work there and almost nothing that needs to be decided quickly has company wide effect. Those handful probably operate by consensus most of the time anyway. What's the point of a CEO?