I don't know if it's typical to have multiple layers of recruitment companies, but in very complex IT projects, it is typical that there will be a number of subcontractors. Many of those subcontractors will actually be individuals, and those individuals will be incorporated individually. It may look like there are layers of subcontracts when the subcontracting entity is actually an individual in that contract as a corporation.
On November 9th, 2023. See this statement in context.