In that case the mistake was the overhiring rather than the layoff. And it's hard for a board to admit that the entire plan (which they probably approved) was a

In that case the mistake was the overhiring rather than the layoff. And it's hard for a board to admit that the entire plan (which they probably approved) was a mistake from the beginning. If the CEO fails at making the plan work in an obvious way, he's probably out. Edit: As I understand it, he's out if the board thinks they will recruit someone who would have done better.