The OP does have details to back it up, just not hard numbers. He states how new employees had problems getting setup, old employees dealing with misc problems, things not running smoothly in general. Yes most companies consist of more than IT but these days the problem is many organizations seem to look at IT as an extra expense they can skimp on or even completely do without("The bosses son is really good with computer's he can fix any problems that arise!"). Theres two sides to every story and maybe this department was bloated and could've used some restructuring we don't know that part for sure but we do know that things went from everyone being able to work efficiently to all sorts of random issues, suffered by general employees not IT that should've been avoided.
You're taking this awfully personally, I'll ask again do you do in some sort of managerial position? Do you have some personal experience with this sort of thing?
The employees were expensive software developers, electrical engineers, RF signal electrical engineers, and microelectronics design engineers. There probably was one person making minwage. She was a very sweet developmentally disabled girl who delivered the mail to our desks.
Similarly, we don't know the names of any of those executives. That means we don't know if we currently work for them. If we work for other executives, we shouldn't assume that we can generalize this story to our experience!
In fact, since the odds of this exact management team starting a new company in exactly the same industry with exactly the same business model are close to zero, I think we can agree that it would be impossible to learn anything from this story even if we DID know all the details.
You're taking this awfully personally, I'll ask again do you do in some sort of managerial position? Do you have some personal experience with this sort of thing?