People who stayed long enough adjusted, but it didn't mean they were cold-hearted. They just realized that there was more to the story that they saw.
The real challenge was when recent hires would see it and get spooked. One person would get fired and then two people around them would panic and start looking for other jobs. Several people panicked and jumped right back into their previous jobs.
It was also tough when we'd hire someone and they'd discover their predecessor lasted for 2-3 months.
There were also problems with the hire fast part: Often teams would "hire fast" and then lose 3-4 months because they had to deal with someone who lied through the interview, had to be fired, and then another hiring cycle restarted.