This is all an interesting read from where I sit -- I worked for a global multi-national telecom that spun off from the 1996 deregulated local carrier, was bought up by a dot-com bust company, promptly went bankrupt and was sold off various times.
So ... I understand bad morale and 10% layoffs. We went from 25,000 employees (1998-1999) at peek to under 3,000 (2004ish?). I did 17 years of (at least) 10% cuts company-wide, often larger in IT, every 6-12 months.
They're going to have a problem hiring, that's certain. They seem very unconcerned with that both with the drumbeat of layoffs and the forced spyware nonsense.
I remember when things were at the worst at my company, HR did a company-wide "engagement" survey. Being in IT at the time, we worked closely with them to ensure as close to complete participation as possible. The theory behind it was that each employee (anonymous) would receive a ranking, bubbled up to segments within the company (less anonymous) and specific managers.
The reason for the rush to get this out was fraud fears. I guess that number goes low enough to represent something near "an employee who feels morally obligated to destroy the organization", but the number of employees who fit in the range of "so disengaged from the company that they are probably engaging in fraud/theft" in the trial phase was an order of magnitude higher than the team had estimated.
When things get that bad, it's tough to recover. In certain locations we had an impossible time hiring most positions -- we had a toxic reputation in a high-tech location with a lot of job openings; we were often the last choice of the worst candidates no matter what the position was.