Boeing (NYSE:BA) said Tuesday it plans to consolidate its military aircraft business by eliminating two divisions and laying off more than 10% of the staff in an attempt to better position for the future.
The realignment, which will drop the business from six to four divisions, will take effect on October 1.
“This reorganization, coupled with our productivity goals, will reduce organizational complexity and allow us to be more efficient,” Boeing Military Aircraft president Chris Chadwick said.
The four new divisions will be Global Strike, based in St. Louis, Missouri, Mobility, based in Ridley Park, Pa., Surveillance and Engagement, based in Seattle, and Missiles and Unmanned Airborne Systems, in St. Charles, Missouri.
Chadwick said the new organization will allow the unit to meet domestic and global defense requirements for at least the next decade.
“This new structure supports BMA's progression from a product-based business to a capabilities-based business, focusing on supporting our customers in the United States and increasingly important international markets,” Chadwick said.
In order to up efficiency, the company said some work-force reductions will be inevitable, starting with 10% of BMA executive positions.
Additional reductions across all levels are anticipated in the coming months.
The company also announced a new leadership position with the aircraft business.
The operating executive position will be filled by Phil Dunford, who will manage the division’s engineering, supplier management and production operations.