Leadership has fostered a culture of fear and distrust. Employee satisfaction and engagement is super low. This is for myriad reasons.
Perception amongst employees is that they are expendable, that they can be easily outsourced as replacements.
Management won't address employee concerns. When employees have tried to express their concerns with the floundering culture, leadership has responded negatively ("If they don't like it here, they can just leave". "I don't want to hear any more drama") This breeds fear instead of a culture where everyone works together to cultivate a positive, engaged, and innovative environment.
Potential new hires: during your interviews, ask why so many people have left in the last year and really pay attention to the answers (it's not due to the refocus of the business).