I'll give a real example.

In my department we have research staff to look at research proposals and make sure they're good before they're submitted to the grant agency.

Someone might look at the budget and say "This is administrative bloat because it is not teaching focused so we are cutting them."

What's the downstream effect? Well now those professors who relied on the research staff have to take time out of their schedules to do deeper reviews of their work, so they reduce teaching time and increase research time.

They are not as skilled as the dedicated staff, so now there are fewer proposals being accepted. This means less money to the university, and particularly the department.

So what does the department do? They stop hiring undergraduate graders and they institute a hiring freeze. Now that means they cannot admit as many students, teaching costs go up, class sizes go up. And for the admitted students, now they've lost their work study, so it means fewer students are going to enroll because their aid has decreased, effectively increasing tuition. This can be a vicious downward spiral if not checked.

So the original intent of "tighten belts and reduce waste" is really "we made everything worse for everyone"