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The United States Army has been ordered to undergo a major transformation by 2027, involving cuts to personnel and phasing out outdated equipment.
Some shit you should know before you read: If you’re unaware, the US Army is the largest branch of the US military, comprising approximately 452,000 active-duty soldiers as of 2024, with an additional 337,000 in the National Guard and 174,000 in the Army Reserve. For fiscal year 2025, the Army’s budget is projected to be around $185 billion. Despite this massive funding, the Army—like the broader Department of Defense—has never passed a full financial audit. In the 2023 audit, the Pentagon again failed, with only seven of its 29 sub-agencies receiving a clean opinion, and the Army remaining among those unable to account for all assets. According to the Department of Defense Office of Inspector General, the Army could not account for approximately $3.5 billion in assets during that audit cycle, including equipment, supplies, and property.
What’s going on now: In a notable development, Defense Secretary Pete Hegseth issued a directive ordering the transformation of the US Army into a “leaner, more lethal force,” setting a deadline of 2027 for full implementation. The directive, part of what is now being called the Army Transformation Initiative (ATI), aims to reshape the Army’s structure, equipment, and mission alignment to meet evolving global threats—particularly those posed by China.
The directive outlines a broad set of reforms across command structures, personnel distribution, and weapons systems. Key moves include merging the Army Futures Command with Training and Doctrine Command (TRADOC) to consolidate force development under one roof, and transforming US Army Forces Command into the new Western Hemisphere Command by merging it with Army North and South. This restructuring is designed to streamline leadership and align operational commands with regional priorities. Additionally, the directive calls for the elimination of around 1,000 staff roles at Army headquarters, as well as a cut to the number of top-ranking officers to reduce bureaucratic layers.
On the materiel and force-structure side, Hegseth ordered the divestment of outdated manned systems, including select armor and aviation units, and a shift toward drone swarms and unmanned systems to increase speed, lethality, and flexibility. Procurement of platforms like the Humvees and older Apache helicopters (AH-64Ds) will be halted. In a separate statement, Army Secretary Daniel Driscoll said, “We are going to start to cut the things we don’t want or need,” stressing the need to break free from what he described as “parochial interests” and wasteful spending.
Meanwhile, the directive prioritizes investment in long-range precision weapons, air and missile defense, cyber, electronic warfare, and counter-space capabilities, noting that these areas “must be aligned with the administration’s strategy” to deter adversaries and defend the homeland.
The move will likely result in significant pushback from lawmakers and defense contractors, many of whom have long opposed cuts to military programs tied to their districts or corporate interests. Lawmakers often resist program cancellations because defense spending supports local jobs, political capital, and regional economies, making even underperforming or outdated systems politically difficult to eliminate. Defense contractors—such as General Dynamics, Lockheed Martin, and General Atomics—stand to lose billions in procurement contracts and have already begun publicly defending their platforms.
