That's not at all what is proposed.

Step 1: move graduate programs to ECE

Step 2: make faculty ask to be in other departments (with the dean's approval of course)

Step 3: make all faculty who can't get other departments to take them have a 100% teaching appointment and set TA budget of the department to $0. Effectively convincing all those cranky guys you wanted to get rid of to leave the university.

Step 4: ???

Step 5: Success!

Then add the Ph.D. program back in and wait 25 years for it to rebuild.

Sounds like a great plan to me.