Seems like a lot of empty words in the story that don't mean anything in particular.
On the Navy side, hope this means paying off some ships in the very near future and downsizing to a fleet we can actually crew properly, while trying to build up the training system in a sustainable way to train enough people for the incoming fleet.
What I suspect will actually happen is they will target some arbitrary cuts in some trades to get rid of 'tail', have a bunch of people take buyouts while the going is good, realize they need the tail to get things done (like complex procurements and rebuilding) and then scramble to hire the same people back via contractors at a massive premium.
Nothing rebuilds morale like the feeling of impending doom from vague policy pronouncements!
Hard to get that W when you keep scoring on your own Tendy boys, give your nuts a tug!