Problem is, we're growing, but can't keep engineers. In the beginning of the year we had half the number of employees we have now, but twice as much engineers as today. An engineer left us three weeks ago and two more gave notice and are leaving in January. Hiring is extremely hard because of economy.

We have a strong culture, but it is widely felt by the rest of the company that the engineering team doesn't adhere to it. Complaints from other workers range from the decision they made to isolate themselves in their own building, how they actively engage in bickering and in-fighting between their own teams, how they have extremely limited communication to the rest of the company (users of their products), and reports of sexual harassment and racism.

There's zero consistency between the message they're sending. Some engineers believe the team is moving too fast, while a different group believes they're moving too slow. In the exit interviews we had complaints of micromanaging mixed with complaints of lack of management. The new flagship application we're building is extremely simple, but has way too many lines of code compared to all our other (more complex) applications. The development process is indeed slow and full of fail-safes, but there's still an astounding number of bug reports for a simple app.

Has anyone dealt with such a situation and has some advice?

EDIT: I'm a manager but I'm not in the engineering team itself.