That is definitely a terrible way to be managed by one’s employer. It’s certainly not a strategy that would inspire positive morale, loyalty, or any long-term performance improvement. That is simply a desperate executive management team exercising bullying tactics, rather than an actual thoughtful strategy. The people working in the retail stores did that cause this problem. There were numerous poor management decisions made at the senior executive level throughout the organization that negatively impacted the organization and created consequences to those poor decisions that subsequently snowballed over the past few years.
However, I agree with the other people here that the retail team needs to start seeking other employment. Regardless of if you are at management or associate level, explaining why you are seeking a new role shouldn’t be difficult with all the negative press Office Depot has received lately, especially the stories of their less than positive financial situation that shows little likelihood to improve. I was a corporate employee, and based on what I have seen, I believe a bankruptcy may be looming just around the corner. The time to leave is now!