It just is. I work for a German company as a remote team in the US, and we certainly underproduce in comparison. Not by being incompetent, simply by being remote.

Time zone differences really hurt things. As much as we try to find ways to make the value the same, it isn't the people, it's the time.

> That doesn't make closing it down a bad decision

Of course not - but if management doesn't know the challenges involved in managing remote teams the incompetence is theirs. Blaming the team is not right in that case especially when they don't have authority that their managers do.