From the August document obtained by USNI News:
Upon the recommendation of the Chief of Naval Operations, the Secretary of the Navy has approved a plan that will result in 34 Navy Flag Officer positions being reduced, eliminated, or consolidated
The plan aligns Navy Flag Officer billet structure to inventory, complies with statutory limits of USC Title 10, and preserves Navy’s ability to meet Joint flag officer requirements
The plan balances these reductions across officer communities and enables Flag Officer promotions to occur within the year of selection.
Navy Flag Officer end strength adjustments are already underway using a phased approach that involves reduced promotions and increased retirements.
This revised billet structure postures the service to absorb future reductions in headquarters and staff due to sequestration.
This initiative is aligned with similar manpower policies enacted over the past few years to adjust inventory and billet structure of the officer and enlisted force.