Boeing shakes up shrinking defense business
When most people think of Boeing, its huge presence in the jetliner business usually first comes to mind. But it is also a defense contractor, and that business is about to shrink.
It is cutting the size of its defense unit, putting some executives into new roles and reducing the number of managers.
It's also disbanding its Missiles and Unmanned Airborne Systems division, spreading its work out among other Boeing units.
Boeing makes military helicopters and planes, in addition to commercial jets used by airlines. The commercial airplane business has been expanding. But the defense business is suffering because of tight government spending in the U.S. and other countries.
Boeing is reducing the number of defense executives by 30 percent from 2010 levels. A spokesman says much of that has already happened, and the last 10 percent of the cuts will come by the end of the year.
Boeing reassigned several defense executives Wednesday as part of the restructuring.
Boeing says it has cut defense facilities by 10 percent "and is looking for more over time." It did not say which facilities will be affected. The cuts include moves like eliminating its defense plant in Wichita, Kan., which will be done by the end of next year.
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