U.S. Air Force Secretary Michael Donley answers questions during the Reuters Aerospace and Defense Summit in Washington, in this December 14, 2009 file photo.
Credit: Reuters/Stelios Varias/FilesWASHINGTON | Tue Aug 27, 2013 6:41pm BST
WASHINGTON (Reuters) - Former Air Force Secretary Michael Donley will lead a major review of the Pentagon's organizational structure aimed at cutting headquarters costs by almost $40 billion (25 billion pounds) through fiscal year 2023, according to a document signed by Deputy Defense Secretary Ashton Carter.
Carter told key Pentagon officials in a memo dated Monday that he had asked Donley to submit his findings and recommendations for Defense Secretary Chuck Hagel's consideration by the end of September, said the official, who was not authorized to speak publicly.
Carter announced plans to bring in an outside expert last month when he unveiled the results of a four-month strategic review and announced plans to cut Pentagon headquarters costs by 20 percent.
At the time, he said implementing such cuts could be very challenging and the Pentagon needed an outside expert who was "deeply knowledgeable about the defense enterprise and eminently qualified to direct implementation of the ... reductions."
The U.S. military is grappling with massive mandatory spending cuts that could reduce the Pentagon's overall budget by $500 billion in the next decade, on top of $487 billion in cuts already planned.
Donley retired as the top civilian leading the Air Force at the end of June. He worked closely with Carter, who served as the Pentagon's acquisition chief before moving into his current job, when they managed a controversial competition to buy new refuelling planes for the Air Force.
(Reporting by Andrea Shalal-Esa; Editing by Bill Trott)
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