Be very careful what you wish for. Yes, it appears that house cleaning is necessary, but before that you must make up a big red rubber stamp saying " not to ever be employed as a consultant".
Furthermore, watch out for "outsourcing" deals with the aforesaid "retired" employees.
If this is not done, a little reorganisation, a few retirements and some consulting contracts and outsourcing could leave you in exactly the same mess you are in now - with the "retires" making even more money.
As I said on multiple occasions, change, if it is to happen, will need to be overseen by Department of PM & C or nothing good will be achieved.