Source: BBCNoting that long-term savings of $330bn had already been made last year by cutting several dozen weapons programmes, Mr Gates said his new goal was to cut "overhead" in the Pentagon's budget by between two and three percent, or $10bn to $15bn per year.
The savings would allow the Pentagon to sustain current force levels and free up funds for modernisation programmes, he added.
"Simply taking a few percent off the top of everything on a one-time basis will not do," he said. "These savings must stem from root-and-branch changes that can be sustained and added to over time."
Mr Gates said the cuts would include the number of top officers.
"During the 1990s, the military saw deep cuts in overall force structure - the Army by nearly 40%. But the reduction in flag officers - generals and admirals - was about half that."
http://news.bbc.co.uk/2/hi/americas/8670527.stm