Regional mindset and dominance??

The company is evolving into a regional company distinct from being a purely Indian company or a true MNC, due to the strong dominance from certain regions/lang. and it is contagious … Nearly half the members (a number that will likely increase ) in the team and next three reporting levels are coming from the same group,(Not CEO and one level below) which feels like full domination. This presents a serious set of challenges and risks, particularly regarding culture, career growth and fairness. Destroying morale, increasing resentment, and can lead to high turnover among employees from other region. Merit and performance are taking a backseat to cultural affinity. Career paths are blocked unless you conform to what the dominant group says or preaaches.

Diwali no leave/holiday but during their regional festival it was broadcasted to the universe that noone will be available...

Is this one of the main reasons for the current situation???