Seems to me like she gave you a heads up on what she plans to do with the coding positions within the company. It will be up to you if you plan to stay considering the fact that they will no longer employ coders. What position will you be filing in the future? Will you be ok with the fact that you will not be coding but instead doing something else? If you really need the job I would stay but consider looking elsewhere, after all you did go to school to obtain a "coding" position.
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