The U.S. arm of BAE Systems is set to reorganize its business, according to an internal memo, Defense News reports.
According to the memo, BAE would shutter one of two operating headquarters and reorganize the other in a realignment intended to “better deliver our strategy in an increasingly cost-conscious marketplace.”
The operating headquarters of Electronics, Intelligence and Support Services will be closed July 1. Hudson indicated more details on that move will be coming shortly.
CEO Linda Hudson, Land and Armaments boss Bob Murphy and presidents of the five product and service sectors will form a “Senior Leadership Team, ” but no additional details were provided on the role of the team.
“Over the past several months, the BAE Systems, Inc. leadership team has conducted a review of our global markets and our customers’ needs, ” said Hudson, according to Defense News. “From this review, it is clear that we must make changes to our organization if we are to continue our successful journey going forward. As a result, we are realigning BAE Systems, Inc. to better deliver our strategy in an increasingly cost-conscious marketplace.”
Bob Murphy would become vice president of “product sectors, ” charged with operating the Electronic Solutions, Platform Solutions and Land & Armaments sectors.
“Through these changes, we will be better aligned to our key markets, be more competitive in a challenging environment by reducing cost, and be more agile to effectively respond to customer needs, ” Hudson said in the memo. “Moreover, we will be well positioned to pursue growth opportunities in existing and emerging markets.”