They can’t… it’s so endemic they can’t just fire half the labs and give up all that sweet grant money. The reputation hit would be ruinous. Universities would rather look away and pretend there is no problem because it’s too big to deal with.
This was downvoted for some reason but it is very clearly true that universities just can't go on firing sprees if they want to stay solvent.
Universities run a lot of even basic functions on grant money (university takes a cut in money and/or labor) and researchers and labs are the ones that apply for the grants.
