One of the country’s biggest defense contractors with thousands of employees is making massive changes to restructure both its space and defense businesses, financial and defense industry news outlets are reporting.
In doing so, they are making one shock leadership move — purging 50 executive positions.
That’s a lot of high-level employees out of work. CNBC reports that these position terminations will be completed by the end of this year.
“We need to be an agile organization that is more responsive to customers’ needs and committed to continually improving productivity,” CEO and president of Boeing’s defense, space and security division Leanne Caret said in a news release, according to CNBC.
The result, she said, will be a “more streamlined approach to how we’re running the business.”
July 1 will see a new, consolidated manner of organization for their military aircraft and network and space systems segments, according to Defense News.
They will be broken down into four groups, which are:
- “Strike, surveillance and mobility will be led by Shelley Lavender, currently president of Boeing Military Aircraft. Lavender will oversee combat aircraft, including the F-15, F/A-18 and P-8 fighters; Joint Surveillance Target Attack Radar System and modifications for fixed wing aircraft.
- “Vertical lift, which includes the AH-6i Little Bird, AH-64 Apache, and CH-47 Chinook helicopters and the V-22 Osprey tilt rotor, will be led by David Koopersmith, now vice president and general manager of Vertical Lift.
- “Space and missile systems will be headed by Jim Chilton, president of network and space systems. This large portfolio will include Boeing’s share of United Launch Alliance, satellites and other space programs as well as its ground-based strategic deterrent bid and missile portfolios.
- “Autonomous systems will cover the Insitu and Liquid Robotics subsidiaries, unmanned aerial and maritime vehicles and ‘certain electronic and information systems.’ Chris Raymond, who currently leads Boeing’s strategic defense and intelligence systems organization, has been named the leader of this area.”
For a major producer of America’s defenses, changes this big constitute major news for everyone.
With large plants on the West Coast, the East Coast and in the South, Boeing is one of the best-known names in American aerospace and the defense industry.
No wonder the markets are buzzing with the news.
Considering how important Boeing’s products are to the national defense, the military is surely buzzing, too.
What do you think about this massive restructuring? Please share this story on Facebook and Twitter and let us know your thoughts.