Teams are for the most of their life pretty stable units. While individuals come and go, the team itself keeps its character pretty much intact throughout its existence. But when a team breaks up, it breaks up so thoroughly that it is hard to imagine this bunch of individuals to ever form a cohesive unit. I've seen such phase change happening first hand at Najdi.si and I've seen it happen several other times as observer. This effect is the most striking in military where at some point organization just breaks down and everyone braces for his own life thus becoming an easy prey for the enemy.
When a team collapse starts to happening the only proper response of a manager is to go into extreme panic mode and apply shock and awe doctrine of overwhelming force to get his or her people back in order and form a team capable of fighting again. Anything less than that will only prolong the agony of everyone involved which will to an outside observer look like multiple waves of departures and lay offs. Unfortunately in most cases the manager responsible to get things back in order is the same who broke the team in the first place through his/hers lack of competence and confidence. With a bit of luck there exists people higher up in the hierarchy with enough motivation to fix the situation by firing the incompetent manager and bringing in somebody with knowledge, skill, and experience to bring things back in order. If not, the team and/or the company is forever gone.