{"id":32265,"date":"2017-06-14T06:31:19","date_gmt":"2017-06-14T06:31:19","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=32265"},"modified":"2017-06-14T06:31:19","modified_gmt":"2017-06-14T06:31:19","slug":"boeing-restructure-defense-space-unit","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/boeing-restructure-defense-space-unit.html","title":{"rendered":"Boeing to restructure defense, space unit"},"content":{"rendered":"

\n\tBoeing to restructure defense, space unit<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tBoeing Co (BA.N) 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe executives to be cut represent a layer of middle management in between senior officials and each individual business unit.<\/span><\/span><\/span>\n<\/p>\n

\n\tCaret told Reuters the restructuring will make the business faster and help Boeing better anticipate the needs of defense customers.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Customers have "a desire to move fast, and we need to be part of the solution," she said.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoeing's defense arm sells a variety of military equipment including jet fighters, missiles and unmanned underwater vehicles to the United States and its allies.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoeing'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.<\/span><\/span><\/span>\n<\/p>\n

\n\tAutonomous 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoeing's AH-6i, AH-64 Apache, and CH-47 Chinook helicopters will become part of the new vertical lift segment, led by David Koopersmith.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoeing 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe business makes satellites and other space and intelligence systems, and includes its joint venture operation with Lockheed Martin Corp (LMT.N) – United Launch Alliance.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe development, global operations, and phantom works segments will remain largely unchanged within the BDS unit, the company said.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoeing is aggressively building its services businesses to capture new revenue and lift profit margins from high single digits to mid-teens by 2020.<\/span><\/span><\/span>\n<\/p>\n

\n\tChief Executive Dennis Muilenburg established a services business unit earlier this year that combines commercial aircraft and defense services.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-boeing-restructuring-defense-idUSKBN1942R5<\/span><\/span><\/span><\/p>\n

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