Wow, that does sound awful. I think the level of turnover indicates that it is not a good work environment.

I was unemployed/underemployed for over 2 years and took a job at a new company that turned out to be a lot like you describe. I stuck it out for about a year and a half, because I didn't want to be unemployed again, before I finally burned out and quit. By the end I was having panic attacks when I had to deal with my boss. By that point, half the people hired initially were no longer with the company and another is talking about quitting now.

Can you handle being out of work again financially and otherwise? I think if you stay where you are, it is going to be tough to find another job. Being new, it probably won't be easy to get time off for interviews. Plus you will either have to leave that job off your résumé or explain why you're leaving after such a short time, which is going to be complicated.

I'd say the most realistic options are sticking it out for a while to give your résumé some stability or resigning and starting from zero. I guess it depends on how much you need a paycheck and how long you can tolerate your current work situation. My 2 cents, anyways.

Best of luck, I hope you find a better situation soon.