My colleague Jason Perlow posted an interesting piece In the “What the hell were they thinking” department…. Having lived through several good and bad cycles in the market for IT products and services, I can think of more than a few examples of this same sort of "let's burn the paintings in the fireplace to keep warm" mindset.
This is similar to the thinking that caused Digital Equipment to chose to revamp its corporate logo when they were also laying off talented staff members. This move then caused them to spend millions of dollars to replace all business cards, all letterhead stationary and all letterhead envelopes. About the only difference anyone would notice is that the logo went from a series of blue boxes containing the letters "d," "i," "g," "i," "t," "a," and "l" to a series of maroon boxes containing those letters.
Can you cite other examples?