Pentagon Plans to Shrink Army to Pre-World War II Level from the New York Times
"The Army, which took on the brunt of the fighting and the casualties in Afghanistan and Iraq, already was scheduled to drop to 490,000 troops from a post-9/11 peak of 570,000. Under Mr. Hagel’s proposals, the Army would drop over the coming years to between 440,000 and 450,000. That would be the smallest United States Army since 1940. For years, and especially during the Cold War, the Pentagon argued that it needed a military large enough to fight two wars simultaneously — say, in Europe and Asia. In more recent budget and strategy documents, the military has been ordered to be prepared to decisively win one conflict while holding off an adversary’s aspirations in a second until sufficient forces could be mobilized and redeployed to win there. ... The cuts proposed by Mr. Hagel fit the Bipartisan Budget Act reached by Mr. Obama and Congress in December to impose a military spending cap of about $496 billion for fiscal year 2015. If steeper spending reductions kick in again in 2016 under the sequestration law, however, then even more significant cuts would be required in later years."
Good table here.