Paris Air Show: Boeing reshuffle to streamline business
As Boeing Defense continues to streamline its business, after recently stripping out a layer of top executives, the company looks forward to a promising European defence market ahead of the biennial Paris Air Show.
Speaking to journalists, Boeing Defense, Space & Security CEO Leanne Caret, said that the final stage of a three step plan to streamline the company has been carried out, and saw the removal of one layer of the company’s executive positions.
About 50 executive positions are to be affected by the changes. This follows the consolidation of a number of sites in November 2016 and moving the company’s headquarters to Washington DC.
‘Time is money and if we don’t do things faster it is going to cost more,’ said Caret.
The changes will be effective from 1 July and will concentrate current segments of the business into smaller entities reporting directly to the CEO. The four segments will be autonomous systems; space and missile systems; strike, surveillance and mobility; and vertical lift, including the CH-47 Chinook helicopters and V-22 Osprey tiltrotor, both on display at Paris Air Show.
Caret said that there would be no reorganisation costs to the company but severance packages would be paid to those affected, in line with company policy.
As the general feeling in the defence market is one of optimism, Caret noted that ‘it is still only modest growth in the defence market’. However, this comes with renewed confidence which could, if continued, see a lot more new equipment procured.
‘We have seen a general increase in the percentage of defence spending in terms of GDP,’ she added.
When questioned about the effect of sometimes conflicting positions from the US government about defence policy, Caret said: ‘Every administration has its own politics, we stay aligned to our customers.’
She added that the company was continuing to create jobs in the US while at the same time fulfilling customer nations’ desires to have equipment built at home domestically.