Keep reading the article. The main thrusts are: there are something like 2 million paper pushers in the defence force (civilians, military, and contractors). And that there's a lot of waste (such as equipment which is ready for deployment, but doesn't actually work).

I doubt the US can cut the support they give soldiers much more. They are already paying close to minimum wage (unlike the admins, who no doubt make a lot more). If they cut much more, they'll pretty much have to start offering prisoners pardons for signing on (which will drive out good candidates, and piss a lot of people off).