Boeing to restructure struggling defense business unit

WASHINGTON (Reuters) – Boeing Co ( BA.N ) said on Thursday it would bolster its struggling defense division by cutting the number of divisions in half, as the planemaker also conducted a scrutiny of top executives. A series of adjustments.

The merger plans are aimed at making its defense business more manageable as Boeing tries to improve its relationship with the Pentagon, a person familiar with the matter said.

The company said it was cutting its defense division from eight to four, which include vertical takeoff and landing, maneuver, surveillance and bombers, air superiority and space, intelligence and weapons systems.

In addition, Boeing Global Services (BGS) will integrate all government services—domestic and international—into one organization.

Last month, Boeing’s defense business recorded $2.8 billion in charges for various programs, including Air Force One. Reuters first reported in October that Boeing had appointed a senior troubleshooter to help turn around plans for its loss-making defense, space and security (BDS) unit.

Boeing also said Thursday that Tim Peters, current vice president and general manager of maneuver and surveillance, and Cindy Grunsfeld, current vice president and general manager of Missiles and Weapon Systems, will retire after helping with the transition.

Boeing shares were down less than 1 percent at $171.94 in afternoon trading.

Reporting by Mike Stone and David Shepardson in Washington and Aishwarya Nair in Bengaluru; Editing by Shailesh Kuber and Anna Driver

Our Standards: The Thomson Reuters Trust Principles.

Source link