I think this sums it up perfectly. Companies are wrong all the time. They kill product lines, often times even shed customer revenue, to avoid having to further invest in a space that doesn't make sense.

The real question is "should we tolerate shedding jobs" and it's an interesting question. Without stating a personal opinion on the matter, it's interesting to think about how drastically this would shift the economic structure of the nation if the answer was "no"