Earlier quoted context omitted.
First, he said the savings almost certainly less than the cost of the waste. This sounds like a guess. He gives no numbers, and doesn't appear to have quantified anything. Second, maybe IT was running so smoothly previously because it was bloated, and was a huge drain on company resources. Maybe it was running smoothly because a bad manager refused to put a limit on anything, leading to a division whos costs were com…
The exact quote is: "Of course, it all went to shit. New employees would go a week before they had machines, phones, passwords, and ACLs. Printers ran out of paper, projectors ran out of lightbulbs, servers ran out of storage, networks got misconfigured, and so forth. The total time lost and wasted across the whole company was most certainly greater than the savings of laying off the expensive and skilled IT staff."…
All we know from the article is that IT was worse off. But we have no idea how the company as a whole is doing.
Maybe you aren't aware, but most companies consist of more than the IT dept.