You are correct in the numbers, but it was under Pres Bush that the plan was made. I was in the Marine Corps in the early 90s and we were just under 200K. It was a good plan then as the Soviet Union fell apart under Bush and it was felt that there was no need to maintain a "cold war" military. However, times change and so does need. Please remember that all of the services have reduced their support personnel through innovation in order to provide more "trigger pullers." However, the Corps still doesn't have as many trigger pullers as it did in 1990.
I was in the military as well.
The Army had grown to nearly 800,000 due to IraqI. It was downsizing from a plus up. There was a study group that was recommending a permanent downsizing of the military, due to the "peace dividend" expected after the fall of the Soviet Union. This was delayed by the IraqI War.
That war ended in approximately mid-1991. The election was held in November of 92 and BushI (41) lost to Clinton. Clinton came into office in Jan of 93 and stayed until 2001 when he was replaced by BushII (43). We are soon to be in B43's 7'th year.
It was after that war that the review began regarding the downsizing of American Forces. I believe that 41 was looking at a cut to about 15 active Army divisions. He lost that election and the decision was left to C42, who, after trying to get homosexuals in the military, decided to cut the Army to 10 divisions.
It was far too large a cut, and events in the last 10 years have proven that to be an irrefutable truth.