They found they could be more effective as smaller, more focused units. Being a sprawling conglomerate lost its appeal. With that came the discovery that an overcrowded executive suite could be a significant part of the problem. Today's attitude takes this one step further. Instead of unloading only the underperformers, many Firms now start from the premise that executives and whole departments must justify their worth.
Management is now guilty until proven innocent.
It's a logical trend. There's minimal margin for error, and losses must be cut fast. The result is strategic withdrawal from product lines or entire industries. Instead, new partnerships are formed, mergers are sought, and formerly in-company tasks are contracted out. The executive jobs currently being chopped are probably gone for good.