Yeah at a certain point it seems like the bean counters really take over and the easiest way to grow profits is to cut costs... except a certain point there is only so much you can logically cut or optimize. After that you are just cutting the product/service/business to the bone. You can remove the suspension in a race car to save weight, but it's a bad idea.
I am reminded of a Steve Jobs quote:
""It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.
So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.
They have no conception of the craftsmanship that's required to take a good idea and turn it into a good product. And they really have no feeling in their hearts, usually, about wanting to really help the customers."