You're not the boss of me now

So one of my co-workers quit over the weekend. No notice, he just found another job and turned his his key here. My boss admittedly "didn't like him" and she made it show. So he left.

So now we're down a person, and bosslady is scrambling to find someone to replace him. The problem is, she has no sales experience, and we are essentially sales people. This is just another example of people sticking around long enough to be promoted.

My question is this: How do we tell my boss's boss that she is killing office morale and making people leave? He's the president of the company and doesn't have his hands in too much of the operations, he just hangs around long enough to make sure we're making money and then heads off to the golf course.

I'd rather keep my job until I find something else, so as much as my leaving would make a statement, I can't really do that right now. Feel free to share any stories of workplace drama in your responses.