work woes

So Wensday the new manager started working at my store. She and employee X for one reason or another did not like each other. New Manager(NM) didn't like EX's work ethic and EX didn't like some new person telling her what to do. (I realize NM is the manager and she is in charge but she is still an unknown quantity the everyone). So when NM made the schedule for next week she cut EX's hour from 35 to 4 which prompted EX to quit.

I talked to NM about EX and asked why not just fire her if she didn't want her working there. NM's answer was that she didn't want to deal with having to write her up and then fire her. She would rather make EX quit than fire her.

Later we were again talking about EX and NM brought up how she had seen EX basicly doing nothing while on the clock. I then said NM should have written her up then and if she had ignored that then she should have been fired. NM said that she didn't want to be the bad guy.

NM doesn't want to be the bad guy but manipulating someone into quiting seems to me to be a bad guy move.

Several people have told me that they're looking for new jobs. I feel like everything I worked for the past few months to keep the store running is for nothing if we fall apart. I feel betrayed by my coworkers. I don't know what to do. I don't want to have to find a new job. I don't want to work some place that I feel dread going to everyday.

NM wants to run the store by the book. She's told me repeataly that she needs me. I wonder what will happen if she want to enforce the male dress code that includes short hair and no earings on me. Will I quit? Will I submit?

I feel so confused.