It was the same thing every year - digital is cannibalizing film faster than we thought, we need to close down X or lay off N people. A year or two of that sure but over and over again and it became clear the executives were just not getting it. Looking back I wonder if they just decided to slowly ride the ship down, extracting nice salaries along the way. I still can't understand how someone - activist shareholders, a board member with half a brain, an executive willing to speak out - didn't make a bigger stink and try to get fresh leadership.
I remember one year at an all division meeting they showed the latest corporate "motivational" video - "Winds of Change" (http://m.youtube.com/watch?v=JYW49bsiP4k). We thought finally, they get it and are admitting we've been stagnating and now we're gonna turn it all around. Everyone was super pumped up for weeks.
Then we realized the only thing that had changed was our ad agency who had produced the video.