Looks as though they are talking about a manpower reduction rather than a cut in the number of aircraft. Don't know why they ever needed 2 operational squadrons to operate just 7 aircraft aircraft, anyway. Nevertheless, reducing the number of trained crews and support personnel would constrain options for long-term OOA operations in the future. If true, I can only suppose that the other (untaken) measures would have caused more immediate, and/or even less acceptable, pain.
Now stand by for PR10.