Boeing restructures defense business, closes development division

By Tony Bertuca / March 30, 2018 at 12:34 PM

Boeing is reorganizing its defense business, creating new divisions for commercial derivative aircraft and missile and weapon systems, while eliminating its development division.

The two new divisions will report directly to Boeing Defense, Space & Security CEO Leanne Caret, company spokesman Todd Blecher told Inside Defense in an email.

Boeing ordered a similar shake-up last July when it created the vertical lift and autonomous systems divisions.

The changes are the latest steps in Caret’s effort to “better align how we operate to her strategic priorities,” Blecher said.

The new commercial derivative aircraft division will be based in Seattle, WA, and include the P-8, KC-46 tanker and Presidential Aircraft Recapitalization programs. The division will be led by Tim Peters, currently head of Boeing’s flight test activities and a former KC-46 program manager.

The missile and weapon systems division will be based in Huntsville, AL, and will include the Ground-based Strategic Deterrent and Ground-based Midcourse Defense programs. Norm Tew, currently head of engineering for the space and missile systems division, will lead the new team. Tew previously served as Boeing's GMD program manager.

Boeing is shutting down its development division, which had been home to the KC-46, PAR, GBSD, and the CST-100 Starliner Commercial Crew capsule for NASA.

The CST-100 will move into Boeing's space division, which is being renamed space and launch.

“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,” Blecher said. “With tanker and CST-100 progressing toward deliveries, GBSD and PAR on good foundations, and the recent decision by Development VP Pat Goggin to retire after more than 30 years working for Boeing, now is the time to do that.”

Boeing will continue to operate its strike, surveillance and mobility division as before, as well as Phantom Works.

The company will also maintain its global operations division, based in London.