When top management holds a layoff, it makes them feel they are taking a "bold" step. In CSW's case it is the result of a need to chase the numbers allocated from Corporate, often arbitrarily assigned. L3's market (top line funding for military) has increased. In the old days, the VP Finance and CSW President could have genuine dialog all the way to CEO Frank Lanza, and push back when necessary for better long term decisions. Today, there seems to be more corporate layers and less of a relationship.
There is also a case to be made that CSW top management failed to do the long, tough work of new product development, customer engagement, and process improvement to build business and reduce cost of products. To reverse a famous quote: "No Buck Rogers...No Bucks." No new wave of value added products for the military end users means loss of pipeline orders. This is compounded by L3's decision to avoid any aspect of commercial markets. All the while, the integrators (NG, LM, Boeing) have chipped away at content, and actively seek new sources of supply. With a culture of "fear", few will take risks, or even present innovative alternatives needed to move to next generation of products.