Is it bad to have multiple subfolders?

[Alexei]

I’m interested to know whether having multiple folders affects organic ranking or crawlability. So is it bad for SEO purposes, user experience or, maybe, something else?

For example,
www.site.com/dir/dir2/index
or
www.example.com/dir/dir2/products/widget

[piatkow]

I am not aware of any particular issues over sub folders. What is an issue is the number of linking steps between the spider's entry point and the page to be indexed as each step drains away a little "link juice".

If a page is two clicks away from the home page it doesn't matter if it is in the same folder or a different one. I believe that the crawl will only go to a certain depth but again that is the number of links that are followed rather than the number of slashes in the path name.

[Rachels178]

I think this
www.example.com/dir/dir2/products/widget
is fine as long as you keep the url keyword-rich(SEO point of view)

cheers and goodluck