I think it was done to save money at some point, and then because so many people do it, it seems like the right thing to do now. Yet everyone who happens to get a chance at an office wants it.
1st. She trashed talked what was done before.
2nd. she took away any coffee or tea provided for employees to use, saying it cost $10000 a year to provide them.
3rd. Then she got a plan for a complete renovation of the office space, so executive officers had offices in the middle of the building that looked out over what would be open plan offices, so that no-one had the slightest bit of privacy at all. This was not done to fit more people in.
4th. Then a move to a completely different state in the country was being talked about.
I am glad I don't work there any more.
Edit: Formatting.
In order to believe that they do, you essentially have to have such an unrealistically hyperbolic discount function that you believe marginal productivity of your workers is nearly worthless compared to the up-front costs of the real estate.