Aerojet Rocketdyne reorganizes

Aerojet Rocketdyne said today it has reorganized, consolidating six business units into two.

The two units will be Space and Defense, and the senior vice presidents of the organizations will be named at a later date, the company said. Those executives will report directly to Eileen Drake, the company's chief executive, but, in the interim, the space organization will report to Drake and the defense organization to Mark Tucker, the company's chief operating officer.

As part of the reorganization, the new defense unit will be headquartered in Huntsville, AL, along with Aerojet Rocketdyne's defense advanced programs, known as the Rocket Shop. The space business unit will continue to have multiple sites throughout the country, the company said.

Additionally, Aerojet Rocketdyne's board of directors named Warren Lichtenstein, who has served as chairman of the board since 2013, executive chairman of the company.

Aerojet Rocketdyne said the consolidation will result in annual cost savings of about $8 million. The company said it has already realized cost savings of $100 million related to integrating Pratt & Whitney Rocketdyne, which it bought in 2013. Additionally, its competitive improvement program, which it began in March of last year, is set to save about $145 million annually, starting in fiscal year 2019, Aerojet Rocketdyne added.