At the direction of Secretary of Defense Chuck Hagel, Ashton Carter, deputy secretary of defense, has ordered a 20 percent reduction in headquarters management spending throughout the U.S. Defense Department. The cuts apply to all higher headquarters staff, including the Office of the Secretary of Defense Principal Staff Assistants (PSAs) and their defense agency staffs, the Joint Staff, and Service Secretary and Service Chief staffs.
The 20 percent decrease applies to civilian personnel working at headquarters and associated costs, including contract services, facilities and information technology. While military personnel are not part of headquarters budgets, organizations have been directed to strive for a goal of 20 percent decrease in military personnel billets on headquarters staffs. Carter encouraged senior managers to ensure that cuts are made “aggressively and as soon as possible” to eliminate uncertainty for employees and contractors. When possible, some reductions should be made in fiscal year 2014; however, the guideline is to make them proportionately beginning with a fifth of the cut occurring in fiscal year 2015.
Carter has asked that departments submit their reduction plans with their Program Objective Memorandum, which are due on September 23, 2013.