L3 CEO: More than 70 vice presidents 'exited the business last year'

By Marjorie Censer / January 30, 2019 at 3:17 PM

L3 Technologies made multiple leadership changes in 2018, and more than 70 vice presidents left the company, the chief executive disclosed yesterday.

During a call with analysts, Chris Kubasik noted that L3 “changed out two of the four segment presidents during 2018.”

“Across the enterprise, over 70 vice presidents exited the business last year,” he said. “We replaced them equally with external hires and internal promotions, all bringing energy and new ideas.”

Kubasik particularly pointed to personnel changes in the company's traveling wave tube business, which he said was the main cause of the company's margin shortfall last year.

“We appointed a new segment president in September and, subsequently, we upgraded the management team by appointing a new sector president, divisional president, along with new operations and supply chain leaders on site,” he told analysts. “The new team conducted a thorough review in November and December and [is] now executing on a recovery plan.”

Kubasik said L3 is moving to “right-size” the TWT business, “eliminating consultants and contract labor and reducing the total staff an estimated 12 percent, commencing with voluntary reductions and then with an involuntary reduction in force if necessary.”