I personally find the term over-used, but consider [dysfunction][1]dysfunction or dysfunctional:
abnormal or unhealthy interpersonal behavior or interaction within a group
(link and definition from M-W).
It doesn't fit your example sentence, but a slight tweak gives:
Rampant dysfunction among the coworkers caused the project to be delivered late. [1]: https://www.merriam-webster.com/dictionary/dysfunction