Boeing Co (NYSE:BA) announced that it is restructuring its Defense, Space & Security (BDS) division in a bid to make it “more globally competitive.”
As part of its plans, the aerospace giant will reorganize the BDS division into smaller units. The change will affect about 50 executive positions.
“We need to be an agile organization that is more responsive to customers’ needs and committed to continually improving productivity,” BDS President and CEO Leanne Caret said in a statement. “We are fundamentally addressing how we compete, win, and grow in Boeing’s second century.”
Boeing Co (NYSE:BA) said that its Military Aircraft and Network and Space Systems segments will be broken out into four smaller units, effective July 1. The new units will be led by Chris Raymond, Jim Chilton, Shelley Lavender, and David Koopersmith.
The development, global operations, and phantom works segments will largely remain unchanged, according to the company.
Last November, Boeing announced plans to consolidate some manufacturing operations, cutting 500 jobs over four years and closing two plants. In December, the company said that it would relocate the defense headquarters from St. Louis to Washington, D.C., according to a report from CNBC.
The defense, space and security unit is an important segment of the company. It accounts for nearly one-third of Boeing’s sales. The company forecasts that the unit would generate up to $29 billion in sales this year, with total revenue is likely to be in a range of $90.5 billion to $92.5 billion.
Meanwhile, shares of Boeing Co (NYSE:BA) closed up 0.66% on Wednesday. The stock’s performance has been well so far this year, trading up over 23% year-to-date. During the last 12 months, the company’s share price has surged more than 46%.