How to Deal With a Karate-Chopping MD?

Any and all thoughts and advice are welcome and appreciated, specifically from anyone that has dealt with a similar situation prior -

Our firm (small cap PE), like many others, has been negatively impacted by the capital markets situation and unfortunately had to cut our headcount recently. This has only exacerbated the deteriorating morale over the past year, which started with well-liked high performers leaving and more recently a lack of capital to complete new deals.

There is a clear gap in leadership from the MD, who has been stretched thin due to an inability to relinquish control of day-to-day decision making. Rather than focusing on the strategic growth of the firm, the MD refuses to delegate and micro-manages any and all tasks from Analysts, Associates, and VPs. Instead of following the typical chain of command and asking the VP for an update, the MD bypasses the VP and addresses the Associates/Analysts directly, leading to mass confusion over reporting and priorities. Any olive branch extended towards the MD to lessen the burden and take work off their plate is refused, inferring a lack of trust in the individual to perform the work they were hired for in the first place.

As a result of the self-induced stress from needing to have a hand in everything and lack of positive momentum in the capital markets, the MD's temper is constantly flaring. Yelling and verbal assault towards lower ranks and third parties are a regular occurrence, with a desk karate chop or phone throw making a rare but-all-the-more-frequent appearance. All is seen and heard by the entire team as everyone sits in the pit. These events tend to happen at the start of the day, killing any chance of a good morning and ensuring everyone avoids the MD for the remainder of the day at all costs lest they be the unfortunate next victim of their wrath. The pit is quieter than Christmas Eve, presumably because the mouse got hit by an errant phone throw.

Certain individuals (ie favorites) are given preferential treatment and saved from the tirades that others experience frequently, creating inequity among employees. There is an unspoken 'facetime' policy that factors into the favoritism equation, where leaving early (even though work is completed) or electing to WFH on a flex day is frowned upon. Note that many of the leadership group WFH daily, while Analysts/Associates/VPs are expected in office every day. When vacations are taken, they are not respected. In one circumstance, an employee - who had their vacation approved and sufficient cover from their team in office - was driving out of service and ordered by the MD to turn around immediately to sit on the side of the road to hotspot in (presumably with the rest of their family supposed to just sit in the car and wait).

The communication of high-level / big-picture happenings and objectives is nonexistent, leading to many questioning firm continuity as they are left in the dark. Motivation and morale are at all-time lows. What can we do to improve the group in light of the poor culture and leadership?

PS - if you made it this far, thanks for reading