TangoAlphaD: They did, but they they quickly expanded again, including to some of the bases they'd just closed.
IIRC the first cuts were when they decided they would get rid of the E195s and stop using them until they found someone to take them, and the expansion was when they realised they weren't going to find anyone to take the E195s off them and decided to try and find routes that would at least meet marginal costs.