Diet plan??

Hey yall! So I just found out what makes me so uncomfortable when I look in the mirror, and it's my waist looking wide with the obliques. I thought they were love handles, but there is a little fat there! I'm currently 128; and I've read a few articles... If I'm trying to lose a little more muscle mass (including in my obliques) while getting a smaller snatched waist period, would it be smarter to just go on that calorie deficit, do cardio, and pilates and/or vacuums to kill 2 birds with 1 stone?