US Defense Secretary Robert Gates moved to slash a "top-heavy" military hierarchy, announcing plans to eliminate at least 50 posts for generals and admirals, close a major command and cut back on the use of contractors.
Mounting the most ambitious Pentagon reform in a decade, Gates said harsh fiscal and economic realities require that it "make every dollar count" as it fights two wars and equips itself to confront potential adversaries elsewhere.
President Barack Obama applauded the effort, acknowledging that "change is never easy."
"These reforms will ensure that our nation is safer, stronger, and more fiscally responsible," he said in a statement.
US defense budgets have doubled to some 700 billion dollars a year since 2001, but Gates warned that the Pentagon now needs to tighten its belt to sustain and modernize the US force.
At a press conference, he unveiled a series of measures targeting the proliferation of personnel in his own office, in military headquarters, defense agencies and intelligence-related units.
"The culture of endless money that has taken hold must be replaced by a culture of restraint," he said.
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