That was extraordinarily frank of HR. "We don't see this situation getting any better? And it's unlikely this organization will ever truly utilize your talents again." By way of comparison the last jobbyjob I had hired a consultant to follow me around for a week to figure out how to do my job cheaper. When they couldn't, they just decided to see what broke by firing me. It cost them $23m.
I don't want to be a downer on this but if this person is telling you "things aren't likely to get better" they are probably planning their own exit, and their replacement will likely be utterly without loyalty. They'll look at what you cost, they'll look at what they need, and they'll recognize they can get a gold star for the quarter by remaindering your ass. So definitely figure things out, definitely give it the time it deserves, but also keep in the back of your mind the reality that your situation is not as stable as it appears.