According to a petition to The White House:
The US Navy created an Enlisted Retention Board (ERB) in response to military downsizing. ERB reviewed service records of 15,386 sailors in "overmanned" rates with 7-15 years served and made decisions to involuntarily separate 2,947. These sailors need the respect they deserve and their contracts upheld by the government. Before involuntarily separating sailors the Navy should ask for volunteers who want to separate with a severance package, stop recruiting new sailors and let sailors cross-rate before breaching contracts with mid-career sailors.The severance package for the sailors is based on time served and doesn't include the time on remaining contract. Worst case, let them complete the remainder of their contract and early retire them so they can receive the benefits they earned.