In the nicest possible way: I think you are daft if you believe the CEO doesn't realize this will create employee churn.
Employee churn, esp. of the type that replaces long tenured employees with new ones, are often productivity destroying. Good employees that have in-depth knowledge and high capability is worth their weight in gold, and yet they are the most likely to be able to leave under such a churning condition. Losing those sorts of employees are a loss which may not show up in metrics in the short term, but surely it will affect how productive the company will be in the long term.
But churn and burn is Amazon's philosophy. That's why they ask managers to PIP 6% of their reports every year.