Boeing defense to cut 50 exec jobs in management shakeup – Manufacturing News

on Jun14

13 June 2017 | 9:41 pm

(Bloomberg)—Boeing Co.’s defense business is shedding about 50 executive positions in a shake-up that eliminates a layer of management and gives a greater operational role to the division’s boss, Leanne Caret.

Starting July 1, the $29.5 billion defense unit’s main segments — Boeing Military Aircraft and Network & Space Systems– will split into smaller entities reporting directly to Caret, the company said in a statement Tuesday. A third segment is being transferred to Boeing Global Services, a new business to be launched next month.

The moves advance Boeing Chief Executive Officer Dennis Muilenburg’s efforts to tamp down costs. Caret has the added challenge of meeting the CEO’s goal for operating-profit margins in the “mid-teens” while losing a lucrative segment to the services unit. The changes are designed to accelerate decision making and make the defense business more nimble, Caret said in the statement.

“We need to be an agile organization that is more responsive to customers’ needs,” she said.

About 60 defense executives will be transferred to the services operation, said Todd Blecher, a spokesman for Chicago-based Boeing. That unit — which will combine defense and commercial aircraft parts, maintenance and information technology products — is a key initiative for Muilenburg, who sees it evolving into a $50-billion business.

NEW STRUCTURE

Boeing’s development, global operations and Phantom Works segments reporting to Caret will be largely unchanged. The main businesses will be divided into four smaller units:

—Strike, Surveillance and Mobility will be led by Shelley Lavender, Boeing’s senior executive in its former St. Louis defense hub. It replaces the segment formerly known as Boeing Military Aircraft, which Lavender also ran.

—Space and Missile Systems will be headed by Jim Chilton. It includes Boeing’s share of the United Launch Alliance joint venture with Lockheed Martin Corp., the International Space Station and other areas.

—Autonomous Systems, which includes the Insitu and Liquid Robotics subsidiaries, will be led Chris Raymond. It includes the Echo Voyager maritime drone and unmanned vertical lift.

—Vertical Lift, headed by David Koopersmith, will manage Boeing’s Apache and Chinook helicopter programs and the V-22 Osprey tilt rotor.



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