Boeing reorganises defence, space & security business unit

Eight divisions will be consolidated to four to simplify integration and collaboration

Boeing reorganises defence, space & security business unit

Effective immediately, Boeing Defense, Space & Security (BDS) will consolidate its eight divisions into four including:

*Vertical Lift, led by Vice President and General Manager Mark Cherry.

*Mobility, Surveillance & Bombers, led by Vice President and General Manager Dan Gillian, which will include KC-46, SAOC, E-7, VC-25B, P-8, Bombers, AWACS/AEW&C, 777X components and all executive transport programmes.

*Air Dominance, led by Vice President and General Manager Steve Nordlund, which will include classified programmes; the F/A-18, F-15, T-7, MQ-25 and MQ-28 programs and the non-space Phantom Works portfolio, including the Virtual Warfare Centers. "Steve will also become the senior site executive for the St. Louis region," says an official release.

*Space, Intelligence & Weapon Systems, led by Vice President and General Manager Kay Sears, which will include space exploration and launch programmes, satellites, munitions, missiles, weapon system deterrents, maritime undersea, Phantom Works Space and subsidiaries (BI&A, Millennium, Insitu, Liquid Robotics, Spectrolab, Argon and DRT).

"Between now and February 4, 2023, Jim Chilton, senior vice president for Space and Launch, will continue to manage space exploration and launch programmes, satellites and Phantom Works Space. On February 5, 2023, Chilton will become a senior advisor to Ted Colbert, president and chief executive officer of BDS, focusing on future space ventures."

These changes build upon a consolidation of manufacturing & safety, total quality, supply chain and programme management, and the appointment of Steve Parker as BDS chief operating officer, the release said.

"I am confident this reorganisation will drive greater and more simplified integration and collaboration across Boeing Defense, Space & Security," says Colbert. "These changes will help accelerate operational discipline and program quality and performance while stabilising our development and production programs. These are necessary steps to put BDS on the path to stronger, profitable growth."

Tim Peters, currently vice president and general manager of Mobility and Surveillance, and Cindy Gruensfelder, currently vice president and general manager of Missile and Weapon Systems, will be retiring after assisting with the transitions.

"Over the past three decades, Tim and Cindy have played an integral role in delivering critical capabilities for our customers and developing top talent across the enterprise," Colbert said. "The Boeing Executive Council and I are grateful for their leadership and years of service."

Boeing Global Services (BGS) will integrate all government services – domestic and international – into one organisation, led by Torbjorn (Turbo) Sjogren, vice president and general manager of BGS Government Services, the release added.

Defence segment Q3 loss at $2.8bn
Defense, Space & Security (BDS) third-quarter revenue decreased to $5.3 billion and third-quarter operating margin decreased to (52.7) percent, primarily due to $2.8 billion of losses on certain fixed-price development programmes, driven by higher estimated manufacturing and supply chain costs, as well as technical challenges.

Boeing reported a 4 percent increase in third-quarter revenue of $16 billion on higher commercial volume.

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