1. Boeing to restructure defense, space unit

Boeing to restructure defense, space unit

Boeing Co said on Tuesday it would restructure its defense, space and security (BDS) division into smaller units and cut about 50 executive positions, as the world's largest plane maker seeks to make its business more responsive to customers.

By: | Published: June 14, 2017 4:54 AM
Boeing Co said on Tuesday it would restructure its defense, space and security (BDS) division into smaller units and cut about 50 executive positions, as the world’s largest plane maker seeks to make its business more responsive to customers. (Reuters)

Boeing Co said on Tuesday it would restructure its defense, space and security (BDS) division into smaller units and cut about 50 executive positions, as the world’s largest plane maker seeks to make its business more responsive to customers. The business, which accounted for nearly a third of the company’s total revenue in 2016, will be divided into seven units, instead of the present five. All will report to BDS Chief Executive Leanne Caret.The executives to be cut represent a layer of middle management in between senior officials and each individual business unit.Caret told Reuters the restructuring will make the business faster and help Boeing better anticipate the needs of defense customers.”Customers have “a desire to move fast, and we need to be part of the solution,” she said.Boeing’s defense arm sells a variety of military equipment including jet fighters, missiles and unmanned underwater vehicles to the United States and its allies.

Boeing’s military aircraft business, part of the BDS unit, will be rearranged into three smaller segments: autonomous systems, strike surveillance and mobility, and vertical lift.Autonomous systems, led by Chris Raymond, will comprise Boeing’s subsidiaries Liquid Robotics, which makes the Wave Glider ocean surface robot, and Insitu unmanned aerial vehicles, among other businesses.The strike surveillance and mobility business, led by Shelley Lavender, will include the F-15 and F/A-18 fighters and P-8 maritime patrol aircraft.

Boeing’s AH-6i, AH-64 Apache, and CH-47 Chinook helicopters will become part of the new vertical lift segment, led by David Koopersmith.Boeing said its network and space systems business, also part of the BDS unit, will be reconstituted as space and missile systems. The business will be led by Jim Chilton.The business makes satellites and other space and intelligence systems, and includes its joint venture operation with Lockheed Martin Corp – United Launch Alliance.

The development, global operations, and phantom works segments will remain largely unchanged within the BDS unit, the company said.Boeing is aggressively building its services businesses to capture new revenue and lift profit margins from high single digits to mid-teens by 2020.Chief Executive Dennis Muilenburg established a services business unit earlier this year that combines commercial aircraft and defense services.

  1. T
    The Last Inspector
    Jun 14, 2017 at 9:04 am
    Sounds like the moving of deck chairs around on the anic. How does this pare executive management at all? 50 positions eliminated at defense and 60 moved to services? Seems like a 10 exec increase. Boeing almost never lets management go. They know far too much about the various frauds Boeing engages in across the enterprise to be cut off. Instead, they will pay them to inhabit nearly empty offices with no responsibilities or have them telecommute from the golf course and pay them in Boeing stock, which is massively overvalued and doesn't hit profitability. That way none of them will squeal to the feds. The rest of Boeing's defense group is horribly outdated military hardware, the Chinook, their fighters, ICBM kill vehicles that only work 50 of the time in staged tests, etc. The U.S. could fix at least 50 of the fraud in all of their military programs by kicking Boeing to the curb permanently, IMO. : thelastboeinginspector
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