Funny thing is, for all the commenters agreeing that this type of leadership is broken, most of the folks here and everywhere end up always doing the same things once they find themselves in similar positions of power / decision making.
well yeah. the problem isn't that its easy and the execs are stupid. The problem is that its really hard, and they only have extremely fallible numbers to guide them (and the reports from various middle management layers which tend to be useless because the incentives for those guys are very far from anything that would allow ceo to make good decisions)
It's easy to see, from the outside, that a given cut stands a high chance of hurting a company. But cuts must sometimes be made regardless
Yep, because the status quo is hard to change and most people get measured, & thus, incentivized, by medium term metrics (at best). especially when investors are involved.
Because in reality, in most cases it works. I worked in many places that had large offshore teams that I worked with closely (India mostly, but also Hungary, Poland, Argentina, Morocco), and people were mostly happy with the arrangement.
There are some cases where the outcome is bad (like the case at Ford now), and lots of people point out to that and say "I told you so". But those are the exceptions, not the rule.