I do loathe spooks, and think Bruce Schneier is right that giving up all our liberty and privacy for a little temporary safety will end disastrously, but I think in this one particular case Cory's summary is a little too harsh.
The summary makes it sound like the NSA, stung by Snowden's leak, is throwing a tantrum and laying off 90% of its workers to keep them from leaking anything, which will then leave the agency defenseless against hackers.
However, the Reuters article makes it sound like until the Snowden leak, the NSA, like a lot of technical orgs, grew rapidly and hastily cobbled together processes that involve doing a lot of things by hand, and then realized that those things should be automated, and were belatedly trying to do so, and expecting it to reduce the number of sysadmins needed by 90%.
Now that Snowden has leaked all this info and the media and congress and senators are breathing down their necks and asking them hard questions about security, it looks to me like the NSA is desperately casting about for any sort of excuse or justification or explanation it can give them, and one obvious option is to take something they were doing anyway, like automating 90% of their sysadmins, and make up some reason why this project will also improve their security and prevent future leaks.
If so, then they are being dishonest, but as far as we members of the public can tell anything about the NSA, it doesn't look like they're also destroying their own organization in a fit of blind panic, as Cory seemed to imply.