In cost accounting we used the term "death spiral" to describe the process where a company cut it's own throat through cost cutting. One memorable one was when a company which got very wealthy writing and updating long distance software decided that they needed to increase profits. They decided that they no longer needed a separate group to test software after it had been updated. They gave the programmers who updated the software the added task of testing the newly updated software.
You may remember an incident where all the airports and all long distance in the New York/ New Jersey area were shut down because of a glitch in the software. (radar signals for Air Traffic Control were carried via long-distance phone lines) Anyway, that glitch cost millions of dollars and led to numerous lawsuits plus other issues which eventually bankrupted the company. It all happened to save the cost of a few people in a quality control role.
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- DFM October 23, 2026, 2:22 pm
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