Why is cost cutting a really costly operation

It is that earthquake which has a very negative epicenter. It sends tremors of negativism across the firm with the sole message that the firm is not doing good. Everybody in the firm knows that already then why should the firm make it so explicit! It also says that the company has gone so parochial in its vision that the only way to get the firm in profit is to sell the verticals and slash out jobs and stop paper cups! Is this as far the extent to which the top management can think! Is this the upper limit of their passion and imagination? Eric Schmidt had the vision to see the stars and googlers driven by his strong and contagious conviction brought the universe to the access of billions. That is the magnitude of aims that a CEO should have, he/she represents and empowers the minds of thousands under him/her and must not settle for petty things like paper cups. If a programmer is expected to refactor the code the CEO should aim towards things that are revolutionary enough to refactor the world. Edward Deiming induced kaisan in the Japanese industries even when they were incurring loses, he insisted that quality is always cheap and the result of laying emphasis on improvement rather than reducing cost is evident to us all. Ford applied the same principle to its automobile industry and made a staggering profit of $6b from dismal loses. Slashing jobs and selling vertical might bring the company in profit but these are essentially quick fixes which might seem to work in the short run, but create huge and permanent loop holes in the long run. Consider the mindset of people working in such a negative ambiance. How would you convince them to work on innovation when there seems to no apparent incentive for it? How would you ask them to spend more when they know for sure that they would not be rewarded appropriately? Rewards (not that huge in terms of money but huge in terms of recognition) are a must especially when the company is not doing good. Pick teams, individuals and give them small prizes but make sure that all the top management gathers and claps for the performers, bring joy and cheer in the company. Tell them what they can be proud about rather than only telling things that we need to worry about. For god's sake aim for quality, that's the measure of integrity of the firm rather than drawing the firm inside into a small shell which would only help it to sink deeper.