Large public service organisation. Sacked casual workers from just before Christmas to just after Christmas so they didn’t have to pay workers Christmas bonuses. Sounds weird, but it was a wrinkle in the rules that allowed this, and the beancounters seized on it. MOrale plummeted, and the reputational damage was immense.
On a grander scale, my state government some years ago declared a Financial Panic when newly elected to underscore their claims about the profligacy of the previous government. Deciding that there were too many public servants, the new government sacked 10s of thousands and didn’t allow departments to hire. The new government thought they were on an electoral winner, because who likes public servants?
A complete failure of understanding of macro-economics was apparent. Tens of thousands of unemployed and unproductive people put a further hole in the state’s accounts, making things worse. They stopped buying stuff, spreading the pain to shopkeepers and tradies in the community. And all of those sacked people were voters. They liked public servants. Massive electoral backlash from the sackees saw the new government bounced after a term.