Science Applications International Corp. [SAIC] has consolidated its customer facing groups and capabilities focused service lines to improve its strategy execution.
Last week the company also said it has offered a voluntary retirement incentive package to about 100 senior managers. A company spokesman told Defense Daily that there is no estimate of a potential charge associated with the voluntary retirement offer because the company doesn’t know how many employees will accept the offer. The offer is good until mid-November.
Under the consolidation actions, SAIC has gone from five customer groups to three. Previous, the groups were Army, Navy and Marine Corps; National Security; Federal Civilian; and Logistics, Supply Chain Management.
The new groups are Defense Systems, which is led by Jim Scanlon, Federal Civilian, led by Bob Genter, and National Security, led by Mark Escobar. The titles for the group leaders are senior vice president and general manager.
The three new market segments are Engineering, Integration, & Mission Services, led by Josh Jackson, Information Technology Solutions, led by Dan Harris, and Platform Integration, Logistics, Readiness & Sustainment, led by Linda Messano. Jackson, Harris and Messano are also senior vice presidents and general managers.
Jackson’s segment is responsible for advanced analytics, simulation and training, intelligence, system engineering, mission engineering and program support. The Information Technology Solutions segment is focused on digital infrastructure and software integration, and Messano’s segment is responsible for hardware integration and logistics.
Jefferies security analyst Sheila Kahyaoglu said in a note to clients last week that she expects SAIC’s voluntary retirement program to result in about a $20 million savings, adding 25 cents per share to the bottom line.
The restructuring announcement is part of SAIC’s ongoing program called Ingenuity 2025.
“Ingenuity 2025 continues to generate excitement across SAIC as we focus on key strategic growth priorities and bring clarity to the performance drivers and business model enablers that will help us achieve sustained profitable growth,” Tony Moraco, SAIC’s CEO, said in a statement.