Boeing Reorganizes Military Aircraft Division

Sept. 8, 2010
Streamlining functions, cutting management to adapt to current business environment"

Boeing Co. is consolidating its Boeing Military Aircraft business unit from six operating division to four, in order it says to “to position the company for growth in the current business environment.” The changes are to take effect on October 1.

BMA is a unit of Boeing Defense, Space & Security, a $34-billion business that is the world's largest and manufacturer of military aircraft.

The four new divisions will be Global Strike, Mobility, Surveillance and Engagement, and Missiles and Unmanned Airborne Systems. Boeing Military Aircraft president Chris Chadwick said the new organization would allow BMA to meet domestic and global defense requirements for the coming decade.

The changes will reduce BMA’s executive staff by approximately 10%, and more reductions across all levels of the organization are anticipated in the coming months.

The new structure will be overseen by an operating executive who will be responsible for managing BMA's Engineering, Supplier Management and Production Operations functions.

"This reorganization, coupled with our productivity goals, will reduce organizational complexity and allow us to be more efficient," Chadwick said.

Chadwick claimed the 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."

He added that the changes are consistent with other initiatives in Boeing’s defense business that aimed at maintaining its competitiveness and growth potential.

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