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Boeing To Trim Executive Ranks, Shuffle Defense Unit

Nov. 7, 2012 - 01:28PM   |  
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Looking to reduce costs, the Boeing Co. announced Nov. 7 that it would make a number of moves within its Boeing Defense Systems (BDS) unit to cut overhead, including the elimination of many executive positions.

Targeting a 30 percent reduction in executive positions by the end of 2012 compared with 2010, the company will also look to cut facility space, the company said.

To achieve the reduction in executives, the company is consolidating a number of its organizations within BDS:

• Mobility, which is responsible for the V-22 and C-17, among other programs, will join Surveillance & Engagement in the Boeing Military Aircraft group to form the Mobility, Surveillance & Engagement division. The fixed-wing aircraft currently in Mobility’s portfolio will follow the division to its new home.

• Rotary wing aircraft such as the V-22 and the CH-47, which were previously part of the Mobility group, and the AH-6, which was part of the Global Strike division, will become the responsibility of a new Vertical Lift division.

• Weapons programs that were previously part of the Missiles and Unmanned Airborne Systems division, such as the Small Diameter Bomb, will be moved to the Global Strike division.

• The Electronic & Mission Systems and Information Solutions groups will be joined to form an Electronic & Information Solutions division.

Boeing isn’t the first company to shake up its divisions in recent months in the hopes of prying loose executives and cutting cost. Lockheed similarly shuffled its divisions in October, targeting $50 million per year in salary savings by cutting roughly 200 jobs that were largely executive positions.

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