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Restructuring Of Its Defense And Space Unit Announced By Boeing


06/14/2017


Restructuring Of Its Defense And Space Unit Announced By Boeing
As Boeing Co seeks to make its business more responsive to customers and the needs of the customers, the world's largest plane maker says that cut about 50 executive positions and would restructure its defense, space and security (BDS) division into smaller units, the company said on Tuesday.
 
Instead of the present five, the company now plans to divide the units into seven separate units, and at present, the business from those two units accounted for nearly a third of the company's total revenue in 2016.
 
The executives that the company plans to lay off primarily belong to represent the middle management staff that lie between the layer of junior employees in each individual business unit and the senior officials.
 
The restructuring would ultimately help Boeing better anticipate and understand the needs and demands of the defense customers and will make the business faster and more sleek, Caret told the media.
 
"Customers have "a desire to move fast, and we need to be part of the solution," she said.
 
Jet fighters, missiles and unmanned underwater vehicles are among a variety of military equipment that the Boeing's defense arm sells primarily to the United States and its allies.
 
Autonomous systems, strike surveillance and mobility, and vertical lift are the three smaller segments that Boeing's military aircraft business, part of the BDS unit, will be rearranged into.
 
Among other businesses, Insitu unmanned aerial vehicles, and Boeing's subsidiaries Liquid Robotics, which makes the Wave Glider ocean surface robot, would be included in the autonomous systems which would be led by Chris Raymond.
 
The F-15 and F/A-18 fighters and P-8 maritime patrol aircraft would be among the products and units that would make up the strike surveillance and mobility business of Boeing and would be led by Shelley Lavender.
 
Part of the new vertical lift segment, which would be led by David Koopersmith, would include Boeing's AH-6i, AH-64 Apache, and CH-47 Chinook helicopters.
 
Reconstituted as space and missile systems would be its network and space systems business, also part of the BDS unit, Boeing said. The business includes its joint venture operation with Lockheed Martin Corp - United Launch Alliance and makes satellites and other space and intelligence systems.
 
The company said that largely remaining unchanged would be the development, global operations, and phantom works segments will remain largely unchanged within the BDS unit.
 
With the intention to lift profit margins from high single digits to mid-teens by 2020 and to capture new revenue, Boeing is aggressively building its services businesses.
 
Earlier his year, a services business unit that combines commercial aircraft and defense services was established by Chief Executive Dennis Muilenburg.
 
(Source:www.reuters.com)