Yes, the current word count is correct. But the good news is three-fold:
1) The cuts were REALLY necessary and I'm much happier with the beginning of the story. There was way too much filler and description, and now we get to the action much faster.
2) I actually cut around 3500 words. So while there was a net loss, I did manage to get farther in the story. I wrote around 700 words tonight after the glut of editing. I'm well on my way in the next chapter, and I'm hoping that tomorrow will be a very productive day.
3) I got some REALLY nice comments in the critiques I got back today. Along with the incredibly helpful constructive criticism that led to the gutting of the first two chapters, there were some fantastically complimentary comments. That definitely gave me something to hang on to when I was scrapping large swaths of writing.
current word count: 41,701