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BAE Announces Reorganization Plan, Names New CTO in Series of Exec Moves

BAE Systems has announced plans to eliminate its U.K. and international platforms and services operating groups as part of a reorganization effort that will take effect on Jan. 1.

The company said Tuesday it will consolidate its military air and information business, its interest in the MBDA joint venture as well as its Australia, Oman and Saudi Arabia operations into the new air sector.

MBDA is a joint venture of BAE, Airbus and Leonardo.

BAE’s naval ships, maritime services and submarines businesses that currently operate under P&S UK operating group will be merged into the maritime sector.

The maritime sector and the land business, which currently runs within P&S UK, will report directly to CEO Charles Woodburn effective January 2018.

The U.K.-based defense contractor will also restructure its applied intelligence business to facilitate the delivery of cybersecurity, financial crime prevention and intelligence platforms and services to government and commercial clients.

Woodburn said the restructuring is part of the company’s efforts to advance technology innovation and build up its competitive edge.

BAE will reduce its production rates for its Hawk trainer aircraft and final assembly work on Eurofighter Typhoon fighter jets due to uncertainty in the timing of future orders and expects the move to result in up to 1,400 job losses over the next three years within the firm’s military air business.

The company also announced a series of leadership changes that will take effect in 2018.

Nigel Whitehead, group managing director for programs and support at BAE, will assume the role of chief technology officer in January to oversee technology development and investment efforts.

Chris Boardman, managing director of BAE’s military air and information business, will serve as group managing director for the air sector.

Peter Lynas, group finance director and executive board director, will take additional responsibilities at BAE with oversight over U.K. shared services, procurement and group mergers and acquisitions starting Nov. 1.

Guy Griffiths, group managing director for BAE’s international business, will serve as non-executive chairman of the air sector in January.

BAE also plans to cut 375 jobs within its maritime services business and 150 jobs within its applied intelligence business as part of the restructuring plan that excludes the company’s U.S. arm – BAE Systems Inc.

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