Reports: Boeing Reorganizes Defense Business With 2 New Divisions

Boeing (NYSE: BA) will set up two new divisions focused on missile and weapon systems and commercial derivatives aircraft within its defense, space and security business in a move that takes effect Monday, April 2, Defense One reported Thursday.

The reorganization seeks to “refine our structure around our core markets, common missions and priorities and position us to deliver,” Leanne Caret, CEO of Boeing’s BDS segment and a 2018 Wash100 recipient, wrote in a Thursday email to employees.

Tim Peters, head of the company’s flight test activities, will oversee the commercial derivative aircraft division that will be based in Seattle, Washington, and manage the Air Force One, KC-46 tanker aircraft and P-8 programs.

Norm Tew, head of Boeing’s missile defense program, will lead the missile and weapons unit that will operate in Huntsville, Alabama, and cover work on Joint Direct Attack Munitions, Ground-Based Midcourse Defense missile interceptors and intercontinental ballistic missiles.

Inside Defense reported that Boeing will eliminate its development division headed by the retiring Pat Goggin, vice president of the division and a more than 30-year company veteran, and transition the CST-100 Starliner crew capsule project to its space division.

“From the day we stood up [the development division] a few years ago there has been the idea that we could sunset it when programs reached key milestones,” Todd Blecher, a spokesman for Boeing, told the publication in an email.

The company will continue to run its global operations unit in London as well as its strike, surveillance and mobility division and Phantom Works business as before, the report added.

Boeing created four smaller business units in July 2017 as part of the defense segment’s reorganization.