Boeing reorganizes its Defense division
One of the leading manufacturers of consumer airplanes and the second largest U.S. military contractor Boeing has announced their plans to shrink its defense division. These plans would involve cutting jobs considering the US Pentagon is lowering spending on major weapons programs.
These plans to cut costs would take place in the next couple of weeks and would also see the company reducing the number of defense segments to three from seven. These plans were revealed by James Albaugh, who heads the company’s space and defense business, or Integrated Defense Systems.
Another company representative Dan Beck later claimed that the job cuts would be minimum. Boeing also said that it is necessary to restructure this division of their operations to cut costs and minimize losses when there is not much going around in the defense segment.
The US government is cutting their spending on the defense equipment considering they have spent a lot on the Iraq war and continue to have a strong presence in the country leading to drainage of resources. However, Boeing is continuing their hiring in their other branches of aircraft manufacturing.