The move is in anticipation of heightened defence related orders from the U.S. and its allies.
In efforts aimed at making its businesses more responsive to customers, on Tuesday, Boeing Co stated it would be restructuring its defense, space and security (BDS) division into smaller units.
It would also remove 50 executive positions as part of this strategic plan.
The 5 businesses which account for nearly a third of Boeing’s total turnover will now be divided into seven units, who will all report to Leanne Caret, BDS Chief Executive.
The 50 executive positions that will be cut represent middle management in between senior officials and each individual business unit.
The restructuring move is expected to make Boeing’s business leaner and faster and has been done in anticipation of increased defense customers.
“Customers have “a desire to move fast, and we need to be part of the solution,” said Caret.
Boeing’s defense businesses sell a multitude of military equipment including unmanned underwater vehicles, jet fighters and missiles to the United States and its allies.
Its military aircraft business, which is part of the BDS unit, will now be restructured into three smaller segments: autonomous systems, strike surveillance and mobility, and vertical lift.
While the autonomous systems will be led by Chris Raymond, the strike surveillance and mobility businesses will be led by Shelley Lavender.
Its AH-64 Apache, AH-6i and CH-47 Chinook helicopters will become part of the new vertical lift segment and will be led by David Koopersmith.
As for its network and space systems business, it will be reconstituted as space and missile systems and will be led by Jim Chilton.
The development, global operations, and phantom works segments will largely remain unchanged and be within the BDS unit, said the company.