I have a very good friend who worked at a board shop that was once top drawer: They got sold to another corporation, an evil and greedy group. Almost immediately, they pink slipped the safety crew out completely, and cut the maintenance department down to one guy. Soon they were trying to boost the production by a factor of ten. There was one competant shift, who in addition to their regular duties, were faced with fixing the screw ups of the other two shifts. Incompetant workers were not replaced by new hires, they were all given 50-60 hour shifts for months, increasing the failure rates.
The management and top engineers would use out of spec ingredients, non milspec on milspec builds, send out known bad boards, etc; all to get stuff out in time for that quarterly bonus. Engineers would order things done that were very likely to fail, and then doctor the paperwork to make it look like they hadn't forced the issue. They went from procedures that marked failed boards to rules that said they were never to mark failed boards. They ran equipment at 25% efficiency that the manual said were never to be run at less than 75% efficiency; the cost to replace components was too high, and the downtime to recalibrate too long.
And these weren't parts going into Furbys, these were made for medical equipment and the armed forces. This board shop operated for about three years like this before finally getting shut down.
So, yeah, this sort of thing can happen, and it can go on for lots longer than you'd think. Even without complete idiots at the helm.