Is it run by the bean counting optimizer is the question.
There are some business people who are bean counters - they understand the cost of everything and the value of nothing. They will get rid of expensive engineers and then be shocked that they can't keep making money with the same version of the same game for all time.
There are other business people who know the usefulness of engineers making new product. However they don't understand the value and will hire too many and so the company will fail because the profit margins are not there.
You need the compromise. Nobody likes a compromise.