This is definitely tricky, and I do believe in the concept of “change management”, as rapid/sudden changes can sometimes be destabilizing, though others times its necessary to rip the band-aid off all at once (e.g. we’ll see how the case with the house of Saud turns out). I’ve found it matters a lot how you do it — with clear communication, treating people compassionately as they’re let go, and genuinely reassuring the survivors afterward.
I think that organizations are functionally like organisms with their own immune systems — the resilient ones bounce back quickly after falling ill, while the ones that are naturally weaker get sicker after such losses. I would personally assess the organization’s resiliency/immunity first and then act accordingly.