"U.S. to detail Pentagon savings, cuts"

U.S. to detail Pentagon savings, cuts

WASHINGTON | Mon Jan 3, 2011 8:25pm EST
(Reuters) - Defense Secretary Robert Gates is expected to announce as early as Thursday about $100 billion in savings for the Pentagon and cuts to some weapons programs, sources said on Monday.

The announcement will detail a plan that military services have been hammering out for months. The Pentagon is under increasing pressure to cut its budget given huge federal deficits and a drawdown of troops in Iraq.

One weapons program expected to end is the Expeditionary Fighting Vehicle, a 40-ton amphibious landing craft being developed for the Marine Corps by General Dynamics Corp, said two sources, who were not authorized to speak on the record.

Gates is also likely to cancel a medium air-to-air missile being developed by Raytheon Co, said defense analyst Loren Thompson, chief operating officer of the Virginia-based Lexington Institute.

Pentagon spokesman Colonel David Lapan declined comment on whether Gates would make the announcement this week, saying only that Gates would announce his decisions on efficiencies at an appropriate time.

http://www.reuters.com/article/idUSTRE70306W20110104