Boeing reorganizes defense business

Boeing plans to restructure its defense, space and security business and slash management jobs by 30 percent as a way to ensure continued profitability in response to the shrinking U.S. defense budget, reports Reuters.

The second-largest U.S. defense contractor plans to consolidate its missiles and unmanned airborne systems, the story said. Weapons programs such as the small diameter bomb will be shifted to the global strike business, the story said.

As for the Chicago-based company's unmanned systems operations, it will continue under the supervision of Chris Chadwick, president of Boeing Military Aircraft, but certain support functions will be shared with other divisions, the story said.

Boeing also plans to merge its electronic and missions systems business with its information solutions unit to establish a leaner operation, the story said.

Because defense constitutes 40 percent of the company's revenues and returns, controlling costs is paramount to maintaining the company's overall profitability moving forward, analysts said.




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