FILE PHOTO: The Boeing logo is displayed on a screen at the NYSE in New York
Breaking Defense: Under shadow of financial losses, Boeing makes sweeping changes to defense biz
The changes, including halving business divisions, come as Boeing’s defense sector finds itself at a crossroads, with new leadership contending with systemic financial issues tied to its large number of fixed-price contracts with the US government.
WASHINGTON — Boeing is overhauling its defense, space and security organization, cutting down from eight business divisions to four in the hopes of boosting performance amid a string of financial losses, the company announced today.
“I am confident this reorganization will drive greater and more simplified integration and collaboration across Boeing Defense, Space & Security,” said Ted Colbert, chief executive of Boeing’s defense sector.
“These changes will help accelerate operational discipline and program quality and performance, while stabilizing our development and production programs. These are necessary steps to put BDS on the path to stronger, profitable growth.”
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WNU Editor: How can a major arms manufacturer lose money is such a "war-fever" environment?
Boeing Is Overhauling Its Defense, Space And Security Divisions After Experiencing Financial Loses
Boeing Defense to Cut Execs, Consolidate Divisions -- Defense One
Boeing reshuffles defense unit after recent losses in key programs -- Defense News
Boeing reorganizes defense unit in push to simplify -- Reuters
Boeing reorganizes defense unit, Kay Sears to lead space and launch business -- Space News
2 comments:
2 reasons
Big organizations are inefficient.
Over promise and underdeliver. Customers want the moon and suppliers sometimes think they can deliver.
In some federal offices they make a point of under-promising and over-delivering. They do not want bad ratings or loss of a job. That is not to say that they are stupid or lazy. They just do not want to get in a bind. They also try to work faster and more efficiently. The computer age has not completely unfolded. There are still upgrades taking money that are in the process of being completed.
Q "How can a major arms manufacturer lose money is such a "war-fever" environment?"
A - Money is being diverted into VIP and congressional pockets
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