You are very correct. Often it is a knee-jerk reaction, a move into a protection mode. Labor costs are among the biggest costs for a business, so an assessment of essential and non-essential headcount is often done, resulting in a RIF. Part of that process invariably cuts the very change management personnel (L&D, Recruitment, OD, etc.) who can help turn things around. That does not make the decision necessarily wrong, but it may not always be the best long-term solution. Short and long-term issues are often in competition with one another. Solving the short-term concern tends to sacrifice long-term benefits while playing the long game tends to create pain and instability for the short term. Businesses just have to make a strategic decision about what is most important to them. What decision best aligns with the mission, vision, and values of the company? Can they weather through the short term pain and even make to the long-term gain? Are they willing to shift course, engage in brand new strategy, in order to resolve the short term concerns even if that means the original long-term goals are not achieved? Perhaps new long-term goals are necessary? Every situation and business is different. No one-sized-fits-all solution and there is no crystal ball.