Pentagon officials say they've eliminated 27 jobs for generals and admirals since March.
The Washington Post reports this is the biggest military reduction since the end of the Cold War.
The cuts are part of a plan to reduce the upper ranks by 10 percent over five years to save money.
The Obama Administration wants to trim $450 billion from Defense budgets over a decade.
There will be an addition $500 billion in automatic cuts if Congress cannot agree on a deficit-reduction plan in the next year.