Due to the failure of a few other high-profile software projects that were also outsourced, management decided to outsource all their software development and laid all the Americans off.
***That sentence doesn’t make sense.
Reducing payroll in the short term does that. The fact that they may pay more in the end or have to rely on competitors for certain software functions (which they were already doing) counts for nothing as long as they can cash in before the SHTF.