Boeing shakes up defence biz, cuts 30% management jobs
Boeing, the Pentagon’s second-largest supplier, said it also will close some facilities in California and consolidate several business units in an effort to trim $1.6 billion in costs by the end of 2015, on top of $2.2 billion in reductions achieved since 2010.
“We are raising the bar higher because our market challenges and opportunities require it, and our customers’ needs demand it,” Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, told employees in a memo obtained by Reuters and confirmed by Boeing.
He said the total savings of $4 billion would make the company healthier and better able to deal with an increasingly complex and challenging marketplace.
“Even with the uncertainty ahead of us, we are charting a positive course, and we are committed to excellence, execution and investment,” Muilenburg said. “I like Boeing’s competitive position and our approach — facing into it aggressively and with a sense of productive urgency — and not ‘hunkering down’.”
The sweeping measures come as all US weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defence spending in the US Boeing shares pared early losses after news of the restructuring. Its stock had taken a beating late last week partly on concern about dwindling defence spending following US President Barack Obama’s re-election.
Boeing said the changes were not a direct response to the
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