[peterb]

They have horrible management, which is where the "layoffs" should happen. They have great engineers, skilled craftsmen, workers, etc., but the upper ranks and board of directors are full of patronage and incest.

[mmastrac]

I think a more appropriate final word here would be "nepotism".

[AtheistOfFail]

You're right, the company is full of nepotism and incest.