This is a sad example of needless extremism where anything short of the nuclear option just isn't good enough.
Literally just one of these transgressions is a fireable offense at most other companies.
hyperbole has the exact extremist effect you're railing against, which is indeed needless.
with that said, a demotion, an unpaid furlough, or pay cut may be part of a more reasonable consequence, giving the offenders a chance to reflect and grow (and eventually return to their prior status), rather than throwing them into a potentially negative cycle.
Why are you sure? Especially given their weak response so far?
But as long the money roles in investors don't give a shit.