Boeing Military Aircraft to Cut 10% of Executive Jobs
Boeing Co., the second-largest U.S. defense contractor, is revamping its military aircraft business, eliminating 10 percent of executive positions and consolidating the unit to four divisions from six.
The four new divisions are global strike, mobility, surveillance and engagement, and missiles and unmanned airborne systems, the company said today in a statement. The job cuts are part of an effort by Dennis Muilenburg, chief of Boeing’s defense unit, to cut as many as 400 positions, Damien Mills, a spokesman for Chicago-based Boeing said in a telephone interview.
The defense unit’s operating margin decreased 1.2 percentage points in the second quarter as sales fell in every area except military aircraft. The aircraft division’s restructuring follows a Pentagon plan announced in July to slash as much as $60 billion from weapons and military-service purchases over five years.
The reorganization will include about “20 positions to be eliminated to increase cost efficiency,” at the military aircraft unit that makes F-15 and F/A-18 jet fighters, Mills said.
To contact the reporter on this story: Gopal Ratnam in Washington at gratnam1@bloomberg.net.
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