Sounds like what they did to me at work. Went from a team of 16 to a team of 7.

"But hey, we're gonna be able to give the clients better service, and produce more 'cause we'll do it a different way!"

The old "less is more" principle. Only problem is they saw the savings short term, but not the costs long term, and the different way was never thought out.

Not trying to be a downer, but I'll believe it when they show me the results.