FDL: Obama’s Pentagon Strategy: A Leaner, More Efficient Empire

[Luminous Animal]

4. Edited to add the link...

He's downsizing personnel and slowing the growth of defense increases. He is not making defense cuts.

Remarks by the President on the Defense Strategic Review

http://www.whitehouse.gov/the-press-office/2012/01/05/remarks-president-defense-strategic-review
Here:
As we look beyond the wars in Iraq and Afghanistan -- and the end of long-term nation-building with large military footprints -- we’ll be able to ensure our security with smaller conventional ground forces.
...

And here:
"Over the next 10 years, the growth in the defense budget will slow, but the fact of the matter is this: It will still grow, because we have global responsibilities that demand our leadership. In fact, the defense budget will still be larger than it was toward the end of the Bush administration. And I firmly believe, and I think the American people understand, that we can keep our military strong and our nation secure with a defense budget that continues to be larger than roughly the next 10 countries combined.