What if the results of what are exposed show that there is only enough real work for 25% of the current staff? Would the administration implement the layoffs?
What I've learned is that if you think like you do (and I do), you should not work with people that think like this. The best way to avoid this sort of bureaucratic thinking by the administration is to work for a small business. However, the trade-off is much too hard for many of us; if you work with people that value business more than family, you might be working for some real assholes.
So, it requires a careful balance. Enough people in the business so that the companies led by assholes are limited, but small enough so bureaucrats like the ones you mention can't flourish.