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What about the management style bothers them? Toxic? Too controlling? I think your approach would be different depending on the issue, but either way, I would try to talk to the manager about it. It’s hard to find good employees. Use the risk of losing them as your leverage and try to talk broadly instead of specific people.
Do you agree with your direct reports? What had your manager “done to the department”?
What Media 1 said. Do you agree with your manager?
Agencies aren’t democracies. I would sit down with your manager and try and get a sense of the bigger picture. Find out her/his motivation and reason for the changes. There may be legitimate business reasons. You job is then to help your direct reports understand. Management style may not be able to be changed however. If your manager’s style is toxic it may be up to you to be the advocate for your direct reports and let him/her know that it’s causing some friction.