Boeing Restructuring Defense Segment To Align With Strategy

Boeing [BA] is reorganizing its defense segment by adding two new divisions and eliminating another to better align with its market strategy, according to a company spokesman.

The two new divisions, Commercial Derivative Aircraft and Missile and Weapon Systems, will report directly to Leanne Caret, CEO of Boeing Defense, Space & Security, Todd Blecher, a Boeing spokesman for the segment, said in an email response to query.

The KC-46 tanker. (Boeing photo)

The KC-46 tanker. (Boeing photo)

“Those market areas are key parts of our strategy, so elevating them to their own divisions, as a follow up to last July’s creation of Vertical Lift and Autonomous Systems divisions, brings greater alignment of the organization structure with the strategy,” Blecher said.

The new alignment is effective April 2. The restructuring also eliminates the Development division, which oversaw the KC-46A tanker, Presidential Aircraft Recapitalization (PAR), Ground Based Strategic Deterrent (GBSD), and CST-100 Commercial Crew capsule programs. Blecher noted that the tanker and Commercial programs are shifting from development to production and added that both PAR and GBSD have “achieved key milestones and are on solid foundations.”

Pat Goggin, the vice president in charge of the Development division, is retiring.

The Seattle, Wash.-based Commercial Aircraft division will be led by Tim Peters and have responsibility for P-8 anti-submarine patrol aircraft, KC-46, and PAR programs. Peters currently leads the company’s flight test activities and is a former program manager for the KC-46.

The Missile and Weapons Systems division will be led by Norm Tew, who is currently the head of engineering for the Space and Missile Systems division. The new division, which will be based in Huntsville, Ala., will include GBSD, Ground-based Midcourse Defense (GMD), and the Joint Direct Attack Munition and other weapons that are produced near St. Louis. Tew at one time was program manager for GMD.

In addition to the two new divisions, Boeing’s defense segment includes five other U.S.-based divisions. These are Space and Launch, which will include NASA’s Commercial Crew program, Autonomous Systems, Vertical Lift, Phantom Works, and Strike, Surveillance and Mobility. The defense segment also includes the London-based Global Operations division that manages operations in the United Kingdom, India, the Middle East, and Australia.

News of the restructuring of Boeing’s defense segment was first reported by Defense One.

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