In my opinion, the main issue was weak local leadership and poor product direction. For a small office with mainly one key product, the company needed a capable leader who understood the product, the market, the customers, and the technical challenges. The leader should be able to work with the team to drive the product forward, improve sales direction, and identify where the product still has market value.
However, from my experience, local leadership did not appear to have enough domain or technical understanding to support the product effectively. There was no clear strategy to strengthen the product, improve market positioning, or rebuild sales momentum. Instead, the workplace became more political and less performance-driven.
During the restructuring period, employees did not feel strongly represented or protected by local management. Many decisions appeared to be executed from the top down, with little visible effort to challenge, explain, or propose better alternatives for the local team. This created frustration and disappointment, especially among employees who had contributed to the product for many years.
There also seemed to be favoritism in how people were treated. In my view, capability, product knowledge, and real contribution were not always the main factors in how employees were valued. This affected morale and trust within the team.
For a small company, leadership quality is critical. When the local leader does not deeply understand the product, the customers, or the technical side of the business, it becomes very difficult for the team to succeed. The issue was not only business downturn, but also lack of strong leadership, lack of transparency, weak employee support, and a culture that became too political.