I Been Mangled
Obligatory IBM stories (because they're the masters of downsizing/offshoring)
One test group had a networking expert who had been in the group for *ages*, knew all the ins & outs of the system, and was the 3rd level network support. He was retiring (yes, actually "retired", not "resourced") and trained his replacement 3rd-level support guy as thoroughly as he could. Come the next round of "redundancies" after the guy's retirement, they laid off the replacement 3rd level network guy, and handed his job off to the *first* level support guy. So if 1st-level (let's call him "A") couldn't fix something, he'd hand it off to 2nd level ("B") support. If *he* couldn't fix it, who does it go to next? Yep, "A".
Then there was the internal Lotus Notes development team. They had also been handling support calls for *internal* Notes issues, and someone was actually smart enough to realize this was a bad use of resources. They got a team in Toronto to take on the support role, freeing the developers to actually do development. Then someone decided to move support to Brazil as a cost-saving measure. So they flew in folks from Toronto and Brazil to Poughkeepsie to do training. The Toronto folks, well aware of what was up, proceeded to quickly find new jobs in Toronto well before the training was done (jobs actually being possible to find in Toronto, unlike in "New Detroit", AKA Poughkeepsie NY). So now when internal Notes admins had to call for support, they had to either call external support (at external prices) or pay the dev team at *dev team prices*. Ended up costing way more than they thought they'd save.