No need for a dedicated focus is nowhere near enough information to take away "this is not important to our company anymore". It is management speak for you are not doing that here anymore.
You would have to know the exact responsibilities this person had, how much time/energy they took, whether or not there was duplication of effort elsewhere, etc.
It is important to know the facts, from both sides. In my mind, at least.
For example, they are hiring a PM on this same team right now. It's very possible they just saw this position as an unnecessary level in the hierarchy.
