If true, management is really sticking it to the First Officers already there. Either the general experience level of these guys is rather low...or the company has decided to bypass them altogether.
A 'few' really experienced DE Captains would generally not be a problem. A hundred would likely mean greatly reduced upgrade possibilities...and moral at rock bottom.
Either way, not good for the longer term for the junior folks that want to remain.
Management may be rather shortsighted.
Could it be that the road is paved for a favored group to join and bypass folks already there?