It makes the short term numbers look good. They just want to produce a spreadsheet that tells Wall Street that they cut $x million in labour costs, and don't really care how that affects the long term health of the company.

Besides, when a corporation becomes a certain size, they don't invest in innovation any more, they just buy a start-up that did something innovative, integrate it into their existing product and then repeat the cycle.

Capitalism is trending more and more into short term thinking, because Wall Street realised that capital can be moved at the press of a button. When a corporation is sucked dry, you load it with debt, sell your stock to retail investors, pension funds and/or the government and move on to the next opportunity.