I agree with Michael that this is very bad writing! The sentence is encumbered by repetitive abstract words that don't call much to the reader's mind, and the grammar is convoluted for no good reason. "The *classification* exercise ... resulted in the *classification*" is already a bad start. Encumbered means burdened or overloaded. It usually applies to spaces (a path, a room), but you can also use it to describe something that hampers your movements. In such cases ("encumbered by thick clothing"), it means something like "hampered" or "hindered". By extension, saying that a category is "encumbered" means that it has too many members. But it is wrong to say that "29 posts" are encumbered. It is the *level* that should be encumbered, not the 29 posts. The writer probably wanted to imply that the "Principal level" (whatever that means) needed to be more finely divided. As for the rest of this terrible sentence, it probably means that after the new classification, 72 posts were ranked at the "Principal level", whereas 29 posts that used to be at the Principal level were reclassified one level lower.

The word "encumbered" is not used in a standard way. It seems to mean something like "stuck" or "blocked". The usage of "encumbered" may be technical or may be wrong. The whole sentence doesn't seem to make sense. Any writer who uses the same word (level) 3 times in the same clause needs to improve their English. Edit: Poor you! I read it again. I think what they mean is that they reevaluated a lot of job positions which are currently occupied. 29 Principal positions were recategorised at a lower level. But the present jobholders are probably not going to be demoted. It will only be possible to advertise the post at the new, lower level once the current occupant leaves. Till then, the post is considered "encumbered".

Thanks! :)

Yes, it's an alternative spelling.

Thanks Su.Ki. I wasn't able to find it on any dictionary though. Did you mean incumbent?