But - it does nothing for the morale of your true 'key' people. the designers, developers, programmers, librarians, back end guys, test, simulation.. when you see so many high level people leave... it does not give you 'faith' that your management is competent. Basically no one cares if a bunch of vps leave, they are really only important to themselves, wtf do they really do? not much.. but when they start firing/letting go their own, you could be next and it isn't the kind of environment I'd want to servicing in.
Maybe since they are all 'new' they can see a sinking ship much better than the veterans.