The Secretary of Defense is committed to reengineering headquarters staffs at all levels. Toward this end, he reduced and restructured the staffs nearest to him – The Office of the Secretary of Defense and the Joint Staff.

The Secretary directed that OSD staff be cut by one-third by the end of fiscal year 1999. We have already completed over 90 percent of the reduction. The Joint Staff will be reduced by 29 percent by fiscal year 2003. Defense Agencies are moving forward with reductions of 21 percent by fiscal year 2001. This goal was adjusted in the fiscal year 1999 Budget. Field Activities will exceed their required 36 percent reduction. Lastly, Military Department Headquarters will be reduced by an additional 10 percent by fiscal year 2003.