The premise behind most layoffs is straightforward. Cutting people reduces payroll, payroll is a major expense, and therefore cutting people improves the financial position of the company. On a spreadsheet, in the quarter the decision is made, this logic holds. The difficulty is that the spreadsheet captures only the most visible costs and none of the ones that arrive later.

Organizations seem to have lost the ability to make decisions with clarity, commit to them appropriately, and adjust course when evidence demands it. Understanding why this has happened, and what it takes to restore effective decision-making, requires looking honestly at the patterns that have emerged and the costs that they create.

The workplace has fundamentally shifted. Most companies now offer hybrid work environments, flexible schedules, and manage teams distributed across multiple locations and time zones. With AI tools reshaping how we work, remote collaboration platforms becoming the norm, and employees expecting greater autonomy, leading effectively requires a completely new skill set.