Raytheon consolidates operations with new structure for C4I and information systems

Raytheon is consolidating its business operations, and, in the process, is creating new structures for its C4I systems, as well as intelligence and information systems.

The new structure will consist of four businesses: Intelligence, Information and Services, resulting from the combination of the Intelligence and Information Systems and Raytheon Technical Services businesses; Integrated Defense Systems; Missile Systems; and Space and Airborne Systems.

Each of these businesses will be expanded by the realignment of the former Network Centric Systems business operations, and this new structure will be effective April 1, 2013.

“Our new structure will help us enhance productivity, agility and affordability in a challenging defense and aerospace market environment,” said Raytheon chairman and CEO William Swanson in a company statement. “As we continue to operate in an increasingly competitive budget environment, our ability to enhance our operations, expand our global reach, and coordinate our development opportunities is critical to our success.”

As part of the reorganization, Lynn Dugle was named president of the newly-formed Raytheon Intelligence, Information and Services business. IIS combines the operations of the former Intelligence and Information Systems business, based in Garland, TX, and RTSC, based in Dulles, VA. The combined business had annual external sales of approximately $5.5 billion in 2012.

IIS vice president and general manager will be John Harris II, former president of Raytheon Technical Services Company.

Integrated Defense Systems, headquartered in Tewksbury, MA, IDS will include two new product lines: C4I Systems and Air Traffic Management. The expanded business had annual external sales of approximately $6 billion in 2012.

The Missile Systems business based in Tucson, AZ, will now include Combat & Sensing Systems, as well as Raytheon UK. The combined business had annual external sales? of approximately $6.5 billion in 2012.

Finally, Space and Airborne Systems business based in El Segundo, CA, will now include Integrated Communication Systems and Advanced Programs. The expanded business had 2012 annual external sales of approximately $6 billion.

The consolidation is not expected to have any impact on the company’s 2013 financial guidance, said Raytheon in the announcement. The company anticipates annualized cost savings of approximately $85 million and a reduction in its workforce of approximately 200 employees related to this effort.

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