- Boeing Co BA has announced consolidating its struggling Defense, Space & Security Business (BDS) Unit.
- These changes build upon the consolidation of Manufacturing & Safety, Total Quality, Supply Chain and Program Management, and the appointment of Steve Parker as BDS's chief operating officer.
- Effective immediately, Boeing is slashing its defense unit from eight to four divisions, which include Vertical Lift, Mobility, Surveillance & Bombers, Air Dominance and Space, Intelligence & Weapon Systems, the company said.
- Additionally, Tim Peters, currently vice president and general manager of Mobility and Surveillance, and Cindy Gruensfelder, currently vice president and general manager of Missile and Weapon Systems, will retire after assisting with the transitions.
- With these changes, Boeing Global Services (BGS) will integrate all government services – domestic and international – into one organization led by Torbjorn (Turbo) Sjogren, vice president, and general manager of BGS Government Services.
- Last month, Boeing's defense business recorded a $2.8 billion charge for several programs.
- Reuters also reported that the acting head of the Federal Aviation Administration (FAA) said he does not expect the agency will certify the Boeing 737 MAX 7 by the end of the year.
- Related: US Government Watchdog To Review FAA's Oversight Of Two Safety Features On Boeing 737 MAX.
- Price Action: BA shares are up 0.57% at $173.76 during the premarket session on the last check Thursday.
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