Markis10, a non verbose reply to your post.
Who exactly did/does the work no longer done by employees who were separated from what was then the CAA? Obviously the flight service officers were removed, but lots of other category staff were removed - as I said there weren’t 3000 FSO’s.
A simple fact check, as you so politely put it, should reveal the answer.
Someone is still doing the work (as fieldmouse has suggested) but they have simply been removed from the CAA/ASA balance sheet. I am reasonably confident they aren’t doing it for free.