The plan has some merit, many risks though, it'll be very hard to implement.
Restructuring a very large and complex organization requires careful personnel decisions - promoting the right people and removing the wrong ones. The execs think they are doing this correctly...
I am not 100% sure that they are on the right track, I am seeing mixed results. Some inexperienced managers now oversee large teams, which WILL lead to many problems.
While some of these moves may prove positive, many risk further turmoil. Overall execution must improve to achieve the plan's aims.
On the people level, the plan will cause tons of hurt, good people will be affected and it'll negatively affect the morale. Some of us who stay will see our workloads increased and we'll always feel like another round may be around the corner.
Good luck.