You're too optimistic. Companies that are big enough will inevitably do this because it appeals to management, which forms a cohesive and insular culture inside them, and because it can be sold as a cost savings. These companies will inevitably find ways to survive by exploiting their size and power, and so they will be held up as models, and everyone smaller than them will be under pressure to follow their example. The only way it will someday "fail" is if it falls out of favor with management, maybe because some celebrity CEO bashes it in a bestselling book. But after that CEO and his book pass out of the limelight, it will come back, until it falls out of favor again, and so on.