George Little, the Pentagon's press secretary, said Hagel is sharing the pain by cutting his own budget by a like amount, CNN reported Wednesday.
The cuts go into effect in October 2014 and will last until 2019.
Much of the savings will come from a cut in the number of people working for Department of Defense leaders.
"Early estimates indicate that the total savings could be in a range of $1.5 [billion]-$2 billion," Little said.
He added that the cuts will be implemented even if Congress lifts sequester-level budget caps.