This one really isn't that hard. Keep in the people who want to stay, let go the people who want to leave. There are plenty in the latter category. Whatever you do, once the decision is made, let people know in clear unambiguous language what that decision is. Instead of hiding one sentence in an article nobody read.
I understand that alot of the nonsense is budget driven, but bringing back morale patches and abolishing Blue Monday are $0 fixes.