Let 'em have em. They already messed up this company, let them go mess up the competition now. Sounds like a plan. Encourage the lowest performers to go.
There's perfectly fine reasons for a company to fail that are not the fault of anyone working there. Small startups relying on revenue from a bigger client at the beginning that shifts their spend, market changing quickly etc.
Which I think are all in the domain of the C-Suite to anticipate and handle, aren't they? If they aren't preparing for those situations then maybe they aren't the right folks for the job.
Perfect way to lose your staff to your competitor.