They were not very clear on where the cuts are, but here is the quote from the linked article:
"In order to refocus the Firefox organization on core browser growth through differentiated user experiences, we are reducing investment in some areas such as developer tools, internal tooling, and platform feature development, and transitioning adjacent security/privacy products to our New Products and Operations team," Baker wrote.
The article prepends the paragraph with another sentence to impose its own interpretation on it, but the way I read it is that the browser division is reorganized around the user experience and everything else is moved in products and operations. Not sure how to highlight the words "browser growth".
Regarding Servo, the project is killed and part of the people had been kicked out, but the rest were merged with the core engine team. My understanding is that Mozilla decided that even Google is not doing two browser engines at the same time and decided to move the old one to rust the evolutionary way.
Did they fired someone from the ff team? Maybe, but I don't think that it is because the browser is no longer important for them. The fact that they moved there best rust devs to it testifies that at least they are not giving it up so far.