This paper studies a two-layer decoding method that mitigates inter-cell interference in multi-cell Massive MIMO systems. In layer one, each base station (BS) estimates the channels to intra-cell users and uses the estimates for local decoding on each BS, followed by a second decoding layer where the BSs cooperate to mitigate inter-cell interference. An uplink achievable spectral efficiency (SE) expression is computed for arbitrary two-layer decoding schemes, while a closed-form expression is obtained for correlated Rayleigh fading channels, maximum-ratio combining (MRC), and large-scale fading decoding (LSFD) in the second layer. We formulate a non-convex sum SE maximization problem with both the data power and LSFD vectors as optimization variables and develop an algorithm based on the weighted MMSE (minimum mean square error) approach to obtain a stationary point with low computational complexity.